RESULTS MID-YEAR REPORT - Coca-Cola FEMSAMID-YEAR REPORT JANUARY-JUNE 2016 CONTENT STRATEGY & GOALS...

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Sustainability 2016 MID-YEAR REPORT RESULTS JANUARY-JUNE 2016 COCA-COLA FEMSA

Transcript of RESULTS MID-YEAR REPORT - Coca-Cola FEMSAMID-YEAR REPORT JANUARY-JUNE 2016 CONTENT STRATEGY & GOALS...

Page 1: RESULTS MID-YEAR REPORT - Coca-Cola FEMSAMID-YEAR REPORT JANUARY-JUNE 2016 CONTENT STRATEGY & GOALS 3 Value Chain Business Strategy Sustainability Strategy Focus Areas 2020 Goals Sustainable

Sustainability2016

MID-YEAR REPORT

RESULTS

JANUARY-JUNE 2016COCA-COLA FEMSA

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MID-YEAR REPORT

JANUARY-JUNE 2016

CONTENT

STRATEGY & GOALS 3Value ChainBusiness StrategySustainability StrategyFocus Areas2020 GoalsSustainable Development Goals

OUR PEOPLE 10Culture and ValuesComprehensive DevelopmentTraining and Development

OUR COMMUNITY 15Healthy LifestylesCommunity DevelopmentSustainable Sourcing

OUR PLANET 20Water Waste and RecyclingEnergy

MID-YEAR REPORT

RESULTS

JANUARY-JUNE 2016COCA-COLA FEMSA

RESULTS MID-YEAR REPORTJANUARY-JUNE 2016

SUSTAINABILITY COCA-COLA FEMSA 2

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VALUE CHAIN

VALUE CHAIN

PACKING MATERIAL

INGREDIENTS WATER

DISTRIBUTION CENTER

CEDIS

BOTTLINGIn our plants we carry out actions to produce the high quality beverages we commercialize. Here, we prepare them for our markets.

PRIMARY DISTRIBUTIONWe transport our products to the distribution centers.

DISTRIBUTION CENTERHere we organize the presale and secondary distribution processes to our 2.8 million points of sale.

SECONDARY DISTRIBUTIONOnce an order is complete, the delivery routes are in charge of distributing the beverages to all points of sell.

POINT OF SELLThe customers sell our beverages to each one of our consumers.

CONSUMERMore than 358 million people buy a beverage, enjoy it and get hydrated.

RECYCLINGWe generate processes to collect, recycle and recover the waste generated by our packages.

Throughout our value chain we created more than 100 thousand direct jobs and 1 million 900 hundred indirect jobs.

1 It is estimated that for every generated job in the Coca-Cola System in Mexico, 19.23 indirect jobs are generated throughout the national economy.

SECONDARY DISTRIBUTION

POINT OFSALE

CONSUMER

RECYCLING

BOTTLING

PRIMARY DISTRIBUTION

STRATEGY & GOALS

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OUR STRATEGIC BUSINESS FRAMEWORK ENSURES OUR LEADERSHIP IN THE COMMERCIALIZATION OF GLOBAL LEADER BEVERAGE BRANDS THAT GENERATE ECONOMIC, SOCIAL AND ENVIRONMENTAL VALUE FOR ALL OUR STAKEHOLDERS. IT IS MADE BY FIVE PILLARS WHICH GUIDE OUR WAY TO OPERATE AND MAKE BUSINESS.

BECOME A MULTI-CATEGORYLEADER WITH GLOBAL FOOTPRINT

CATEGORIES:

CATEGORIES:

CSD revitalization

Stills profitable growth

Dairy quantum leap

Winning PortfolioBuildup

Leverage our scale

Local market solutions

Cutting-edge technology

Operating ModelTransformation

Attain collaboration

Maintain our passionate execution

Increase multi-culturality

CulturalEvolution

Disciplined Capital Allocation Business Sustainability Targeted Innovation

Protect and grow sparkling, while diversifying aggressively in stills, dairy and new categories

Expand footprint in Latin America & Asia, monitoring other opportunities within The Coca-Cola System

BUSINESS STRATEGYSTRATEGY & GOALS

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SUSTAINABILITY STRATEGY

CONTRIBUTING TO SUSTAINABLE DEVELOPMENT IS A COMPLEX TASK AND SO, WE HAVE IMPLEMENTED OUR SUSTAINABILITY STRATEGY WHICH PROVIDES A GUIDE TO ACCOMPLISH OUR MISSION OF POSITIVELY TRANSFORMING THE COMMUNITIES WHERE WE OPERATE.

STRATEGY & GOALS

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FOCUS AREAS

WE FOCUS ARE ACTIONS WHERE WE CAN HAVE THE MOST POSITIVE IMPACT. SINCE LAST YEAR, WE HAVE ADJUSTED OUR FOCUS AREAS CONSIDERING GLOBAL LONG-TERM MEGA TENDENCIES, PRIORITY RISKS FROM OUR BUSINESS AND OUR SUSTAINABILITY STRATEGY.

Re

levan

ce

fo

r o

ur

stake

ho

lde

rs

Relevance for Coca-Cola FEMSA

+

+-

Our Planet

Our People

Our Community

Local environmental impacts

Social welfare in communities

Waste

Environmentalimpacts

of transportand logistics

Responsible marketing and communication

Nutritionand physical

activation

Water management

Packagingand

recyclingSocial welfare in

communities

Offer of sustainable

products and services

Training and development

Energyuse

Supplier development

Compensation Safety and health at work

Culture and values

STRATEGY & GOALS

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2020 GOALS

WE ARE CERTAIN THAT OUR SUSTAINABILITY STRATEGY NEEDS TO EVOLVE AND GENERATE CONCRETE RESULTS. IN THIS MATTER, WE HAVE DEFINED 2020 GOALS FOR EACH AXIS:

We have generated more than 145 thousand volunteer hours since 2015.

More than 798 thousand people have been benefited since 2015.

8 works centers have implemented the Methodology for Addressing Risks and Relations with the Community (MARRCO).

Since 2010, we have increased our efficiency by 11% achieving 1.75 liters of water per liter of beverage produced.

In Mexico and Brazil we return more than 100% of the water used in our production processes, representing 57% of our global volume.

We have an advance of 17.6% representing four times the material used in 2010.

18 plants certified as zero waste and 80% of our plants recycle at least 90% of their waste.

46% of our energy consumption in Mexico is supplied by renewable sources.

We generate 15.19 grams of CO2(eq)

per liter in manufacturing processes, a reduction of 28% against our 2010 result, decreasing our impact across our value chain.

• Generate 1 million volunteer hours from 2015 to 2020.

• Benefit 5 million people through our programs and

initiatives promoting nutrition and physical activation

from 2015 to 2020.

• Increase our water use efficiency to 1.5 water liters of water

per liter of beverage produced.

• Give back to our communities and their environment the

same amount of water used to produce our beverages.

• Integrate 25% of recycled or renewable material in our

PET packages.

• Recycle at least 90% of our waste in each one of our

bottling plants.

• Provide 85% of manufacturing energy in Mexico with

clean energy.

• Reduce by 20% the carbon footprint of our value chain.

• 100% of our priority plants and distribution centers will

have a Social License program.

2020 GOALS PROGRESS

STRATEGY & GOALS

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AT COCA-COLA FEMSA WE ARE COMMITTED TO THE SIMULTANEOUS GENERATION OF SOCIAL, ENVIRONMENTAL AND ECONOMIC VALUE FOR OUR COMMUNITIES. THIS VALUE GENERATION IS A CONTRIBUTION TO OUR PEOPLE, OUR COMMUNITY AND OUR PLANET THAT FURTHER ADDS TO THE ACCOMPLISHMENT BY 2030 OF THE UNITED NATION’S SUSTAINABLE DEVELOPMENT GOALS. WE WORK TO MAXIMIZE THE POSITIVE IMPACT OF OUR ACTIONS, BY CONSIDERING PRIORITY AREAS FOR OUR INDUSTRY AS WATER, HEALTHY LIFESTYLES, WASTE AND RECYCLING, ENERGY AND COMMUNITY DEVELOPMENT. THERE ARE SUSTAINABLE DEVELOPMENT OBJECTIVES WITH MORE RELEVANCE FOR COCA-COLA FEMSA. HERE ARE SOME EXAMPLES OF OUR MAIN ACTIONS:

We count with several potable water access programs for health and hygiene with FEMSA Foundation, while offering a broad beverage portfolio for every lifestyle, promoting health and integral wellness in all our collaborators.

We promote Community Development with several programs that support education, infrastructure and lifetime skills development. We also do diverse donations to institutions as Tecnológico de Monterrey.

In Coca-Cola FEMSA we are committed to creating a culture of Diversity and Inclusion, promoting equal opportunities and respect, recognizing that our differences make us stronger while we positively impact our business results, our community and our work environment.

We hydrate 358 million consumers at a global level with 10 beverage categories. We have diverse projects focused on nutrition and healthy lifestyles for Our Community developed in alliance with FEMSA Foundation.

We generate +100 direct employments at a global level and, through our economic activities, thousands of indirect employments across our entire value chain.

STRATEGY & GOALS

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We promote economic growth through efficient use of natural resources, promotion of a work environment proper for the comprehensive development of our collaborators and generating +100 thousand direct jobs in 10 emerging markets countries. We apply the Sustainable Guiding Principles from The Coca-Cola Company and from FEMSA as part of our strategy for Sustainable Sourcing.

We constantly work in innovation processes of our industry, seeking to improve our environmental performance. For 2020, we will reduce by 20% lthe carbon footprint of our entire value chain. We have Local Supplier Development programs where we create sustainable improvement plans.

We offer all our collaborators just and equal working conditions, without distinction for gender, age or nationality.

We have the 2020 Goal of recycling at least 90% of the waste generated in each one of our bottling plants. We develop diverse initiatives for Sustainable Mobility that allow us to reduce the environmental impact of our distribution schemes. We work to encourage recycling and the adequate management of our waste.

We have the 2020 Goal to supply 85% of our manufacturing energy in Mexico with clean energy sources.

Conscious about the importance of water for our company, we work to improve our water use efficiency, properly treat wastewater and return to nature and our communities all the water used to produce our beverages.

We evaluate risks related to climate change in our operations and we have the commitment by 2020 to reduce by 20% the carbon footprint of our value chain. In Mexico, we have the goal to provide 85% of our manufacturing center’s energy with clean sources by 2020.

We are committed to return to our communities and their environment the same quantity of water used to produce our beverages. We have diverse programs that allow us to replenish more than 100% of our water consumption in Mexico and Brazil, 57% of our global water consumption. Our collaborators and their families participle as volunteers in global programs to clean water bodies. Finally, we have multi-stakeholder programs with long-term impact to conserve water bodies with Water Funds.

We participate in the National Reforestation and Water Harvesting Program, the most important one in Latin America, through which we have planted more than 68.7 million trees in 61 thousand hectares since 2008. The program is done in partnership with SEMARNAT, CONAFOR, PRONATURA and the Mexican Coca-Cola Industry.

We actively collaborate in the construction of peaceful communities aligned to our Culture of Lawfulness. At Colombia, we promote social reintegration through Aportando Tiempo. We maintain in all our operations our Business Code of Ethics and a strict compliance to the current legal framework.

On an annual basis we communicate our achievement, opportunities and results in sustainability through our Sustainability Report. We have objectives to promote sustainable consumption of raw materials, increase efficiency and promote recycling in our manufacturing plants and distribution centers.

In our diverse programs and strategies, we look for multi-stakeholder partnerships to maxime the positive impact of our actions. A great example is the Latin American Commitment for a Healthy Future and the Latin American Water Funds Alliance, programs with the participation from several companies from the private sector, governments and non-governmental organizations working together for a common objective. We actively participate in business organizations to fortify the development of the beverage industry in the countries were we operate.

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PEOPLEOUR

THE EVOLUTION AND GROWTH OF COCA-COLA FEMSA IS THANKS TO THE COMMITMENT AND TO OUR PEOPLE’S DAILY WORK THAT LEADS US TO ACHIEVE OUR GOALS AND TO OVERCOME THE CHALLENGES OF OUR BUSINESS.

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“IN COCA-COLA FEMSA WE ARE COMMITTED

TO CREATING A CULTURE OF DIVERSITY

AND INCLUSION, PROMOTING EQUAL

OPPORTUNITIES AND RESPECT; RECOGNIZING

THAT OUR DIFFERENCES MAKE US STRONGER

WHILE WE POSITIVELY IMPACT OUR BUSINESS

RESULTS, OUR COMMUNITY AND OUR WORK

ENVIRONMENT.”

John Santa Maria OtazuaChief Executive Officer

Since 2015 we implemented the Diversity and Inclusion Networks with the aim of building support points that stimulate the development of efforts, activities and programs that enrich and foster a culture of respect and integration in six areas: gender equality, mothers and fathers, multi-generation, disability, multiculturalism, and Gay, Lesbian, Bisexual and Transgender community (LGBT+). We have in our operations in Brazil inclusion projects for people with disabilities, where currently there are more than 500 partners with some type of disability in the most diversified positions (line operator, promoter, forklift operator, engineer, salesman, among others), where 16% of this population has been with the company for more than 10 years, and 20% for more than 5.

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Passion for customer service

Integrity and austerity

Confidence

Respect and integral development of team

members

Social value creation

CULTURE AND VALUESFEMSA Culture is experienced everyday in Coca-Cola FEMSA through our behavior, work style and shared values, which identifies us as a team and gives meaning to what we do. In addition, it is the pattern under which we guide ourselves to operate inside and outside of our organization.

MissionSatisfy and please beverage consumers with excellence.

VisionBe the best bottler in the world, recognized for its excellent operations and the quality of its people. Generate sustainable economic and social value by managing innovative and winning business models with the best employees in the world.

The Coca-Cola FEMSA Values talk about what we are and what distinguishes us.

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COMPRENHENSIVE DEVELOPMENTDue to the importance of the comprehensive development of our employees and their families, in the first half of 2016 we invested USD $4,450,000 in more than 2,900 programs to promote balance between personal life and work, thus providing better conditions for our team. More than 202,000 people benefited from this initiative.

We have the 2020 Goal to generate 1 million volunteer hours from 2015 to 2020.

During 2016 we have had a breakthrough of 39,509 volunteer hours, through 329 events with 16,772 volunteers, representing a total of 145,703 hours since 2015.

All this took place aligned with the FEMSA’s Social Development System, which is comprised by seven dimensions:Labor, Education, Health, Values, Economic, Family, Social and Environment

Values

Family

CO

MPR

EHENSIVE DEVELOPMEN

T

Edu

catio

n

Eco

nom

ic

Labour Health

So

cia

lLife Q

uality and Welln

ess

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TRAINING AND DEVELOPMENTExcellence is achieved only with a trained, updated and responsive team of all issues that fall within our industry, this is the only way that we can continue to evolve to provide better products and services to our customers and a better working environment to Our People.

That is why in the first half of 2016 we invested USD $5.7 million in training for our employees, through Development Agendas customized for each of them and technical training for the evolution of our business, manufacturing and logistics processes, ensuring that there is a comprehensive training offer which reinforces three competences: leadership, technical competences and functional competences.

Our personal development process is formed with a plan where 70% of the time is spent on critical experiences, 20% in mentoring and coaching processes, and 10% in virtual and face-to-face training.

Concept First half of 2016 results

Investment (Million USD) $5.7

Million hours of training(Including third parties)

1.22

Investment per person (USD) $65.52

Coverage 75%

Average number of hours per trained employee

18.7

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COMMUNITYOUR

WE WORK HAND IN HAND WITH THE COMMUNITIES WHERE WE ARE PRESENT IN ORDER TO BUILD SOCIAL CAPITAL AND AN HARMONIC DEVELOPMENT ENVIRONMENT, CONTRIBUTING WITH ALL THE RESOURCES AT OUR DISPOSAL TO GENERATE SHARED VALUE.

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LATIN AMERICAN COMMITMENT TO A HEALTHY

FUTURE

ROBUST ORGANIZATION TO PROMOTE

HEALTHY HABITS FOR SCHOOL CHILDREN AND

THEIR FAMILIES IN LATIN AMERICA, WORKING

WITH DISCOVERY EDUCATION ON HEALTH &

WELLNESS CURRICULUM.

The Latin American Commitment to a Healthy Future, is a broad-based multi-sector organization committed to promiting healthy habits in children and families. It will include food and beverage companies, public health organizations, government agencies and other stakeholders. Founding members include The Coca-Cola Company, Coca-Cola FEMSA, PepsiCo and Postobon.

Following Colombia’s launch, the Latin American Commitment to a Healthy Future will partner with HWCF and Discovery Education to launch similar school curriculum programs in Mexico, Brazil and other countries across Latin America in the coming months.

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HEALTHY LIFESTYLESBecause we care about the health of all our customers, in Coca-Cola FEMSA we promote Healthy Lifestyles encouraging initiatives, projects and programs that foster a culture of physical activation, health, sport and self-care, thus helping to improve the quality of life of Our Community.

In 2015 we set the goal of reaching 5 billion people through our programs and initiatives that promote nutrition and physical activation by 2020.

In the first half of 2016 we have benefited 288,347, reaching a total of 798,000 beneficiaries accumulated since 2015 with an investment that exceeds USD $1,298,0001. In Mexico, we also activated more than 2 million 877 thousand people with the MOVE initiative.

The most important programs we have developed over this semester are:

• Sustainable vegetable gardens in Argentina, hydroponic vegetable garden project installed in Villa Los Piletones to supply with leafy vegetables and tomatoes to the Dining Facility Los Piletones and improve nutrition.

• Ludonutrición in Colombia, where forming healthy lifestyles, especially promoting physical activity and healthy nutrition in children aged 6 to 13 years through games is seeked.

1 Exchange rate corresponds to June 30th, 2016.

If you want to see more programs visit:https://www.coca-colafemsa.com/sustainability.html

• Hora de Moverse (Time to Move) in Venezuela, which seeks to generate lasting habits to promote healthy and active lifestyle in children.

• Citizenship Plaza in Brazil, where the work is done together with the surrounding communities by making access to public services easier and building a network of community improvement promoting the development of health, nutrition and physical activation.

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COMMUNITY DEVELOPMENTWe have set ourselves the goal of achieving the 100% of our critical plants and distribution centers have a Social License program by 2020. In order to strengthen our interaction with communities; we use the Attention to Risks and Community Relations Methodology (MARRCO, by its acronym in Spanish) based on the building of dialogue, trust, cooperation and commitment. In the first half of 2016 we managed to set up 8 workplaces.

On a commitment to Our Community we work in Community Development and Care for Environmental Local Impacts programs. During 2016, with a joint investment of more than 1 million 132 thousand dollars1, we have reached more than 76,000 beneficiaries.

In social aspects, more than 41,000 people have benefited from programs such as:

• Aportando Tiempo in Colombia, where our partners participate as volunteers supporting entrepreneurs in the reintegration process for demobilized people through counseling that seek for success in their business plans.

• Coordinates for Life in the Philippines where children are taught to develop life skills.

• Vive Bailando in Colombia, social intervention model focused on teenagers developed together with the Colombian Agency for Reintegration (ACR, by its acronym in Spanish) which uses the dance pedagogy as a tool for transformation. The program seeks to impact in a steady and positive manner behaviors, leadership skills, family integration and the ability to work as change agents in environments affected by violence.

1 Exchange rate corresponds to June 30th, 2016.

If you want to see more programs visit:https://www.coca-colafemsa.com/sustainability.html

• Minha Galera Faz Eco in Brazil, program that promotes environmental education enabling young people to be strong change agents in society.

On the other hand, we have benefited over 34 thousand people through programs of environmental benefit. Some examples are:

• Misión Planeta in Costa Rica, where awareness campaigns on the correct separation of waste and its recycling are carried out.

• Yo Sí Reciclo in Mexico, promoting in schools the culture of PET recycling.

• Día Mundial Do Meio Ambiente in Brazil, where reforestation campaigns are carried out with the support of our volunteers.

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SUSTAINABLE SOURCINGThe Sustainable Supply is a fundamental part of our way of operating. This means that we apply social, environmental and ethical guidelines in procurement processes, selection, hiring and evaluation of all our suppliers.

We evaluate our suppliers in order to align our supply chain with the principles and values that govern the Coca-Cola FEMSA operation. In order to carry out this evaluation a new online Sustainable Supply System was developed, which allows us through a third party, evaluate with evidence and transparency the providers in four areas: In addition, the system allows self-management and development of goals and improvements work plans that come to be identified.

As of today we have evaluated in human rights, environment and labor practices 266 suppliers under the Coca-Cola FEMSA principles since 2014, and in collaboration with The Coca-Cola Company we have evaluated a total of 529 suppliers since 2010. This year, we started with the Local Supplier Development program where 66 of our suppliers were evaluated and provided with a development plan with sustainability consulting services to support their improved performance. So far, 80% of them have completed their process and already present progress and improvements. Several of the SMEs suppliers have developed their business model, initiating management system implementations and improving its financial performance.

For dealing with our suppliers and partners, we are guided by the principles on rights in the workplace, which are included in our Policy on Rights in the Workplace, in the Supplier Governing Principles established by The Coca-Cola Company, as well as by the Supplier Guiding Principles set forth by FEMSA.

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PLANETOUR

WE WORK WITH FULL RESPECT AND CARE TO OUR PLANET BRINGING IN OUR TECHNOLOGY PROCESSES FOR THE EFFICIENT MANAGEMENT OF RESOURCES AND PROMOTING A CULTURE OF ENVIRONMENTAL CARE AMONG OUR PARTNERS AND INTEREST GROUPS.

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IN COCA-COLA FEMSA WE ARE COMMITTED TO OUR PLANET AND WE SEEK TO MINIMIZE THE ENVIRONMENTAL IMPACT OF OUR OPERATIONS IN THREE AREAS: WATER, WASTE AND RECYCLING, AND ENERGY.

Coca-Cola FEMSA and T The Coca-Cola Company reaffirm their commitment to the care of water resources in the International Environmental Fair, FIMA 2016, presenting the progress of the Water for the Future program, developed since 2013 along with the Latin American Water Funds Partnership. The program contributes to the goal of the Coca-Cola System of resupplying to nature 100% of the water used in the production of their brand drinks by 2020, seeking to join efforts between government, financial institutions, private sector and communities to contribute to water sustainability.

To achieve this goal Coca-Cola FEMSA and The Coca-Cola Company are working in Colombia in two areas: optimization in the manufacturing processes in their production plants and the promotion of preservation and restoration actions in watersheds.

The goal in Colombia by 2020 is to intervene 2,191 hectares (equivalent to 2,366 World Cup soccer fields) and resupply 2.4 million cubic meters of water (equivalent to 988 Olympic swimming pools).

To this achievement and reach of this goal, it has been working since 2013 in strategic areas of the country, through the Funds “Agua Somos” in Bogota “Cuenca Verde” in Medellin, carrying out the following activities: reforestation and restoration of ecosystems, conservation of moors and forests, sustainable livestock and wetlands recovery.

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WATERWater is the main input for making beverages that meet our consumers’ hydration needs, for this reason we generate major commitments to ensure that we are making efficient use of this resource.

In our production processes we have set as a goal to increase our efficiency in using water until 1.5 liters of water per liter is reached of beverage produced by 2020. From 2010 to mid-2016 we have achieved an 11% increase in efficiency, reaching 1.75 liters of water per liter of beverage.

We also have the goal by 2020 of sending back to our communities and to the environment the same amount of water used in our beverages. In that respect, by mid-2016 we have managed to return to Mexico and Brazil more than 100% of the water used to produce our beverages, which represents 57% of the volume consumed of all our global operations

1.6

1.7

1.8

1.9

2.0

EFFICIENCY IN WATER USELiters of water per liter of produced beverage

1.96

1.83

1.761.75

1.79

1110 12 13 14 15

1.77

16Progress

1.75

For more information, see the infographic:https://www.coca-colafemsa.com/sustainability.html

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WASTE AND RECYCLINGIn Coca-Cola FEMSA a way to evolve is by implementing innovation in our processes and thus mitigating the impacts of our packaging on the environment.

We have the goal by 2020 of integrating 25% of the recycled or renewable materials in our PET packaging, having by mid-2016 a progress of 17.6%, an improvement of four times the material used in 2010.

The Mexican Recycling Industry (IMER, by its acronym in Spanish) plant is dedicated to recycling PET, material that is subsequently used in our processes. Additionally we have recycling processes in Argentina, through CABELMA and in Colombia through ENKA. In conjunction with these initiatives we have recycled 24,285 tons during 2016 and more than 124 thousand tons of PET since 2010.

85

90

95

87% 87%

91%

93% 94%

WASTE RECYCLING

93%

Percentage of recycled waste from total generated waste

1110 12 13 14 15 16Progress

86%

6

7

8

9

8.6

7.9

9.1 9.0

8.2

WASTE EFFICIENCY

11 12 13 14 15

8.6

Grams of waste per liter of beverage produced

16Progress

8.8%

15.3%

10.4%11.1%

14.6%

MATERIAL OF OUR PET PACKAGES

17.6%

Percentage of renewable or recycled materialin our PET packages

0

5

10

15

20

16Progress

4.4%

1110 12 13 14 15

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In addition, we have the goal of recycling at least 90% of our waste in each of our bottling plants, presenting a breakthrough in mid-2016 of 80% of our plants with this feature. On the other hand, we have 18 plants certified as zero residues. The combination of these results now allow us to recycle 93% of all waste generated in our operations.

For more information, see the infographic:https://www.coca-colafemsa.com/sustainability.html

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ENERGYWe work in a large number of projects focused on reducing the energy footprint of our operations on the environment on a daily basis. Our goals by 2020 are to reduce the energy carbon footprint of our value chain by 20% and provide 85% of energy in manufacturing in Mexico with clean energy.

To achieve the reduction of the carbon footprint we focus on making our energetic processes more efficient. From 2010, our measurement base year, by mid-2016, we have managed to increase our energetic efficiency by 16%. In addition, by mid-2016 we generated 15.19 grams of CO2(eq) per liter in manufacturing, representing a decrease of 28% compared to 2010.

On the other hand, we invested in several clean energy projects that today allow us to ensure that 46% of our consumption in Mexico comes from renewable energy sources.

Since 2012 we reported greenhouse gas emissions generated for the Carbon Disclosure Project (CDP), and also for the Volunteer Program of Accounting and Greenhouse Gases of the Ministry of Environment and Natural Resources (SEMARNAT, by its acronym in Spanish) in Mexico.

3.50

3.75

4.00

4.25

4.50

3.863.89

4.034.09

4.20

ENERGY EFFICIENCY

1110 12 13 14 15

Liters of beverage produced per MJ consumed

3.69

4.29

16Progress

21.11

19.96 20.11

19.40

18.40

EFFICIENCY IN GREENHOUSE GAS EMISSIONS INMANUFACTURING PROCESSES

1110 12 13 14 15

18.11

Grams of CO2(eq)

per liter of beverage produced

21

20

19

18

17

1615.19

16Progress

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190

200

210

1 Estimated data for the entire value chain

200.1 200.2

213.1

207.5

EFFICIENCY IN GREENHOUSE GASES EMISSIONS IN THEVALUE CHAIN1

11 12 13 14

Grams of CO2(eq)

per liter of beverage produced

205.42

15

We have endorsed our commitment to combat climate change through the We Mean Business platform with the following commitments:

• Responsible Corporate Engagement in Climate Policy

• Report climate change information in mainstream reports as a fiduciary duty

• Bold commitment to implement renewable energy sources

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Mario Pani #100 7th Floor

Col. Santa Fe Cuajimalpa,

Cuajimalpa de Morelos

Mexico City, Mexico, 05348

Phone +52.55.15195000

www.coca-colafemsa.com