Technology, Innovation and Solid Results: Sustainable … and brakes components for the automotive...

SustainabilityReport 2015

Technology, Innovation and Solid Results: Sustainable Vision

Table of ContentsMessage from the CEO 2

Rassini 4

Our Markets 8

Our Clients 10

Our Value Chain 12

Our Sustainability Model 14

Corporate Governance 18

Ethics and Integrity 20

Material Aspects 22

Stakeholders 26

Economic Results 30

Environmental Results 34

Social Results 48

Environmental Annex 64

Social Annex 65

Index for GRI Content 66

1

Message from the CEO

G4-1 Innovation and technology are key to our quest for more and better alternatives that move us farther along the path to sustainable development. In Rassini, we devote major efforts to our technology development centers in Mexico and the United States and foster academic and research partnerships and participation on three continents: America, Europe and Asia. Year after year we create numerous patents that differentiate us as a top engineering company geared to exceeding customer expectations and giving certainty to investors. This is reflected in the awards and distinctions we have earned year after year in different aspects, especially quality.

We recorded solid financial results during 2015: sales have grown 8.4% compared to 2014 to 12.897 billion pesos along with an increase in EBITDA of 36.5% to 2.141 billion pesos and a net profit that grew to 884 million pesos. These positive results are due to the launch of new products, gains in market share and the constant technological approach of our collaborators.

With our sights firmly set on being the best solution provider for our customers, creating sustainable value for our shareholders, customers, collaborators and community, Rassini designs programs that help to create value for our stakeholders. We run campaigns focused on training all our collaborators and attracting talent, while maintaining our relationship with the community, government and other external players to generate sustained development.

2

In 2015 we have improved the way we share our social responsibility in the value chain. We designed sustainability and social responsibility indicators that are part of our supplier evaluations, and we adhere to the initiatives of our customers in this regard.

I am pleased to present the Rassini 2015 Sustainability Report, Technology, Innovation and Solid Results: Sustainable Vision, which is the result of the actions and implementation of a number of internal standards and policies based on worldwide best business practices. The report is produced based on the Sustainability Reporting Guidelines of the Global Reporting Initiative, and serves as a mean to express our continuous support to the United Nations' Global Compact and reinforcing our commitment to the Ten Principles..

I am deeply grateful for the help, commitment and confidence shown to us by our stakeholder groups—investors, collaborators, authorities, community and suppliers—and in particular, to our customers for their valuable contribution and comments on our first Sustainability Report 2014, and I urge you all to remain in constant communication with Rassini to further develop the way we report on our operations. Technology, Innovation and Solid Results: Sustainable Vision is the creation of us all.

Eugenio MaderoChief Executive Officer

2015 SUSTAINABILIT Y REPORT R ASSINI ˜ Technology, Innovation and Solid Results: Sustainable Vision

3

Rassini is the biggest producer of suspension components for light commercial vehicles and vertically integrated brake discs in the Americas. Rassini has eight strategically located manufacturing plants in Mexico, the United States and Brazil, and four technology development centers in those countries.

G4-5, G4-6

G4-3, G4-4, G4-7Rassini is a leading Mexican industrial company that designs and manufactures suspension and brakes components for the automotive industry. It produces parabolic and multi leaf springs for light and commercial vehicles, springs, rubber-metal bushings, discs, drums, assemblies and hubs for brake systems, clutch plates, engine balancers and counterweights.

Brands registered in Mexico belonging to subsidiaries are:

• AMB. Design owner: Rassini Frenos, S.A. de C.V.

• Bypasa Designatory and Design owner: Bypasa, S.A. de C.V.

• RR Design owner: Rassini, S.A. de C.V.

RASSINI Company Profile

4

The Head Offices are located in Mexico

City and cover administrative and

corporate functions.

United StatesOhio: Springs.

Plymouth, Michigan: Sales and technology center.Flint, Michigan: Brakes.

Mexico Coahuila: Leaf springs, springs and technology center.

Puebla: Discs, drums, assemblies and technology center.Mexico City: Head offices.Xalostoc: Leaf springs.Querétaro: Elastomers and stampings.

Brazil São Paulo: Leaf springs, springs and technology center.Río de Janeiro: Leaf springs.

Resende: Distribution center.

Japan Tokyo: Liaison center.


5

GRI-DMA, G4-PR1The products meet the safety and hygiene standards established in ISO/TS16949 and Material Safety Data Sheet (MSDS) quality systems, and this has been validated by internal product audits to ensure specific customer requirements; this applies 100% to each one of the components and substances associated with the product. The requirements of the International Material Data System (IMDS) standard are also met.

56%Leaf Springs

31%Brakes

13%Coil Springs

PRODUCTS 2015

6

R ASSINI ˜ Corporate Profile


7

Rassini, the leading global producer of suspension components for light commercial vehicles, broadened its range in this segment to include leaf springs for the heavy truck market in North America, gaining significant market share in 2015. The company won a contract to supply front suspension technology for the much-awaited, next generation Ford F-650 and F- 750 Work Truck Series that Ford Motor Co. will assemble in its Ohio plant in the United States.

G4-8Sales distribution among the markets where Rassini operates is 89% in the North American automotive market and 11% in Brazil. In terms of products, suspension components represented 69% of sales, while brakes made up the remaining 31%.

A geographical breakdown of the markets served is as follows:

United States, Canada, Mexico, Brazil and Western Europe. Rassini constantly strives to provide the industry with cutting-edge technology, quality and service, which is reflected in its long-term relationships with customers.

Our Markets

8

R ASSINI ˜ Per fil de la Compañía

69%Suspension

components represent

of sales


9

Rassini has a solid and diverse customer base that includes: Daimler, Fiat Chrysler Automobiles, Ford, General Motors, Maserati, Mercedes Benz, Mitsubishi, Nissan, Scania, Tesla, Toyota and VW / MAN.

Our Clients

10



11

G4-12The value chain is key to our operations, hence strategic planning is linked to supplier development in order to strengthen economic, technological and social development with sustainability.

An analysis of the value chain reveals potential markets and platforms through the business positioning process, where industry and market data are captured and transformed into business opportunities and plans, which, depending on their viability, are projected into the five-year business plan.

Our Value Chain

12


1 Suppliers

(Raw materials) 2 Supplierlogistics

3 Manufacturing

4Client

logistics

5 Clients

6Car dealerships

logistics

7Car

dealerships

8End user

9 Scrap


13

As a company with worldwide presence, Rassini has adopted international sustainability and social responsibility models to ensure that its positive impact on society, the environment and economy complies with global best practices. For this reason, Rassini has defined a Sustainability model in which organizational values emanate from Corporate Governance through the Code of Ethics and Conduct followed throughout the organization, and which combines with the Group’s planning and leadership strategies that permeate policies and procedures. The model adheres to international standards and models to cover the three pillars of sustainability, ultimately maturing relations with stakeholders and conducting the respective compliance assessments.

Our Sustainability Model

G4-14, G4-15

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SOCIAL IMPACT

ENVIRONMENTAL CARE

ECONOMIC IMPACT

SUSTAINABILITY

PLANNING LEADERSHIP

CORPORATEGOVERNANCE

CORPORATE SUSTAINABILITY

COMMITTEE

RELATIONSHIP WITH: STOCKHOLDERS, CLIENTS,

GOVERNMENT, EMPLOYEES, SUPPLIERS, COMMUNITY, ETC

POLICIES - GUIDELINES - LAWS - STANDARDS - CODES

SUSTAINABILITY STRATEGY

AUDITS, ASSESSMENTS,

REPORTS

Internal communication

Internal communication

AUDITS, ASSESSMENTS,

REPORTS


15

GRI-DMAThe models and standards that Rassini adopts are external initiatives of an economic, environmental and social nature such as the United Nations Global Compact, the Mexican Stock Exchange Code of Best Practices, the CEMEFI Social Responsibility Decalogue, the SEMARNAT Clean Industry Certification Guidelines, and the CSR commitment of the Automotive Industry Action Group, among others.

Since exportation is one of Rassini’s main activities, we have joined the New Certified Companies Scheme (Nuevo Esquema de Empresas Certificadas, NEEC) to strengthen our production and foreign trade procedures including actions in three major areas: fiscal, customs and safety; all of which will help to improve the security of the business chain including infrastructure, property and personnel of our Business Units.

CERTIFICATIONS:

RASSINI LEADS THE FIELD IN THE QUALITY, STANDARDIZATION, CONTINUOUS IMPROVEMENT AND INNOVATION OF ENVIRONMENT-FRIENDLY PRODUCTIVE PROCESSES.

Among the main certifications are:

• Masters of Quality since 2015• Socially Responsible Company Distinction since 2014• Great Place to Work since 2014• ISO/TS 16949 since 2009• OHSAS 18001 since 2007• ISO14001 since 2004• Clean Industry Certification since 2005

16


G4-16The main associations to which Rassini belongs are:

• Mexican Business Council (Consejo Mexicano de Negocios)• National Auto Parts Industry (Industria Nacional de Autopartes, INA).• National Chamber of the Transformation Industry (Cámara Nacional de la Industria de

Transformación, CANACINTRA).• Business Coordinating Council (Consejo Coordinador Empresarial, CCE).• Mexican Council for Foreign Trade (Consejo Mexicano de Comercio Exterior, COMCE).• Industrial Association of the State of Mexico (Asociación de Industriales del Estado de

México, AIEM).• Nuevo León Automotive Cluster (Clúster Automotriz de Nuevo León, CLAUT).• COPARMEX San Martín Texmelucan.• RIPTAC. Puebla and Tlaxcala Industrial Relations.• Chamber of Industry and Transformation (Cámara de la Industria y la Transformación)

CAINTRA in Nuevo León.• Productive Sector Liaison Committee (Comité de Vinculación Sector Productivo)

of CONALEP Piedras Negras Association of Human Resources Executives of North Coahuila.

• Council of the Polytechnic University of Piedras Negras• Economic Development Council of the Municipality of Piedras Negras.• Economic Development Council of the State of Coahuila. • Citizen Observatory of the Board of Conciliation and Arbitration (Observatorio

Ciudadano de la Junta de Conciliación y Arbitraje)


17

Corporate Governance

G4-34Rassini’s Corporate Governance is regulated by the Rassini by-laws and the Board of Directors, which is constituted by 15 full members and 5 alternate members. The Board is supported by three Committees:

1. Executive Committee2. Audit Committee3. Corporate Practices Committee 3.1 Corporate Practices Subcommittee 3.2 Share Repurchase Subcommittee

As part of corporate best practices, other support committees have been created to ensure Transparency and Sustainability.

For more information about the functions and administration of Corporate Governance, go to:

http://www.rassini.com/gobCorporativo.html

http://www.rassini.com/reportesAnuales.html

Ethics CommitteeSustainability Committee

18


19

G4-56, G4-HR7The Code of Ethics and Conduct applies throughout the organization and to different stakeholder groups such as advisors, officers, collaborators and suppliers, including security personnel in all plants. The Code functions through the use of confidential suggestion and comment boxes, which are reviewed regularly by the Ethics Committee. The main guidelines of the Code are based on promoting and living by Rassini values. For more information on the Code of Ethics and Conduct, go to:www.rassini.com/documents/Codigo-de-etica.pdf

Ethics and Integrity

OUR VALUES

Service AttitudeTo provide effective and profitable solutions to my external and internal customers, with enthusiasm and a positive “As-if” attitude, in the shortest time possible, with the required quality and at competitive prices.

CommitmentTo make an extra effort in my activities. To think of ideas that are valuable for me and the company.

TrustTo be congruent in what I say and do in Rassini.

DisciplineTo meet my objectives and tasks in an effective and timely manner.

Team workTo add my talent and efforts to those of my team to achieve objectives.

QualityTo remember that the quality of the company is reflected in my quality.

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R ASSINI ˜ Corporate Governance


21

G4-18The material aspects that were identified and considered in defining the content of this report are those appearing as “very relevant” on the materiality map. For our materiality analysis, we followed an inclusive mechanism with internal and external stakeholders and senior management to conduct the diagnosis of the different topics related to the sustainability of our business and thus identify the topics of greatest relevance. This mechanism was carried out in four phases based on the GRI guidelines for determining material aspects and their boundaries:

Material Aspects

1. IdentificationWe began by identifying the topics for potential inclusion in our Sustainability Report based on the economic, environmental and social impacts of day to day activities and those topics that might influence the activities of the different stakeholders. This phase was based on:

• The guidelines of the Global Reporting Initiative GRI G4.• The review of our Sustainable Development Report

published in 2014.• Applicable regulations in terms of the environment and

health and safety at work.• An analysis of the most important topics for our sector

using published Sustainability Reports as reference.• Interviews with management in divisions with an

important role in the sustainability strategy.• Participation of our stakeholders.

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2. Prioritization The goal of this phase is to prioritize the topics that could have a positive or negative impact on our organization’s capacity. To that end, we did a quantitative analysis of the relevance of the different impacts of Rassini that were identified in the previous phase, using a four-point scale:

a. Not relevant; b. Somewhat relevant;c. Relevant; d. Very relevant

Internal and external stakeholders were surveyed to assess the topics with the greatest impact. In addition, the topics linked to the business strategy were evaluated to identify the aspects with most influence on the Company’s vision, considering risks and growth opportunities, severity of the impacts and recognized expert opinion, among others.

From these exercises, we derived the Materiality Matrix, presented below, the topics of greatest importance for the sustainability of our business being those reported as Relevant and Very Relevant.

3. ValidationIn this phase we assessed the material aspects from the previous phase to reaffirm the Materiality Matrix and identify the maturity of the relevant aspects in terms of their management and related actions.

In addition, this enabled us to identify opportunities to improve the way we present and communicate information.

4. ReviewIn this phase we incorporated the opinions of internal and external stakeholders to reassess the degree of relevance of the Material Aspects resulting from the 2014 reporting period.

Overall, the result was very similar, although there were slight shifts between Stakeholder Influence and Importance for the Company; relevant topics were maintained and four related to Principles 3, 4, 5 and 6 of the UN Global Compact were incorporated.


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IMPORTANCE TO THE COMPANY (SOCIAL, ECONOMIC AND ENVIRONMENTAL IMPACTS)

INFL

UENC

E O

F ST

AKEH

OLD

ERS'

ASS

ESST

MEN

TS

AND

DECI

SIO

NS

G4-20, G4-21The content of the Rassini 2015 Sustainability Report was based on the GRI, version G4, guidelines and on the process for Defining Material Aspects, considering the internal impacts of our operations.

AE1

AE2

AE3

AE4

AE5

AA1

AA2

AA3

AA4

AA5

AA6

AA7

AA8

AA9

AA10

AA11

AA12

AS1

AS2

AS3

AS4

AS5

AS6

AS7

AS8

AS9

AS10

AS11

AS12

AS13

AS14AS15 AS16

AS17

AS18

AS19

AS20

AS21

AS22AS23

AS24

AS25AS26

AS27

AS28AS29

AS30

0

1

2

3

4

5

6

7

8

9

10

0 1 2 3 4 5 6 7 8 9 10

Categoríaeconómica

CategoríaAmbiental

CategoríaSocial

Economic categoryEnvironmental categorySocial category

VERY RELEVANT

24


G4-19The topics identified for defining the report content are found in the box marked Relevant on the materiality chart, which comprises the following aspects:

CATEGORY CODE ASPECT

Economic

AE1 Economic performance

AE2 Market presence

AE3 Indirect economic consequences

AE5 Innovation

Environment

AA1 Materials

AA2 Energy

AA3 Water

AA5 Emissions

AA6 Effluents and waste

AA7 Products and services

AA8 Regulatory compliance

AA11 Environmental assessment to suppliers

CATEGORY CODE ASPECT

SocialPerformance

AS1 Employment

AS3 Health and safety at work

AS4 Training and education

AS5 Diversity and equal opportunities

AS9 Investment

AS10 Non-discrimination

AS11 Freedom of association and collective bargaining

AS12 Child labor

AS13 Forced labor

AS14 Safety measures

AS18 Human rights grievance mechanisms

AS19 Local communities

AS20 Anti-corruption

AS23 Regulatory compliance

AS25 Grievance mechanisms for impacts on society

AS26 Customer health and safety

AS29 Customer privacy


25

G4-24, G4-25, G4-26, G4-27The key groups for Rassini are those with immediate influence and dependence on our operations. We maintain an open, honest, respectful, transparent and fair relationship with all our stakeholders based on their interests and expectations as well as the economic, social and environmental development of Rassini.

Stakeholders

Clients

EmployeesCommunity

Investors

Suppliers

Environmental Results

Economic Results

Social Results

26


GRI G4-DMASUSTAINABILITY

Rassini promotes joint and synergistic collaboration with its customers,

collaborators, suppliers and community to generate profitability for its shareholders, sustainable development and a high quality

of life, benefitting business culture, the environment, community development,

communication, diffusion and transparency in all that we do.


27

STAKEHOLDER RELATIONS

STAKEHOLDERS MEANS OF ENGAGEMENT FREQUENCY KEY / DISCUSSED ISSUES

Community • Plant visits• Participation in

committees

• Monthly• Semiannual• Annual

• Scholarships• Job Opportunities• Donations• Liaison with the Ministry of Education• Union• Infrastructure• Community support programs• Social events• GRI Materiality surveys

Government • Sustainability Report• Audits

• Bimonthly• Semiannual• Annual

• Security• Audits• Water consumption• PASST assessment• Community support programs• Cultural events• GRI Materiality surveys

Customers • Sustainability Report• Partial reports

• Annual• Quarterly

• Customer audits• Finished product requirements• Technical assistance• Future projects• Engineering development• GRI Materiality surveys

Collaborators • Reunions• Meetings• Annual report• Sustainability report

• Daily• Annual• Quarterly

• Applicable legislation (environment, safety and hygiene)• Audits• Civil protection• Development programs (CONACyT)• Engineering development• Suppliers and purchasing• Social events• Cultural events• Education• Health programs

Investors

• Annual report• Sustainability report• Quarterly reports• Telephone

conferences

• Annual• Quarterly

• Environmental performance• Social performance• Economic performance• Financing plans

Suppliers

• Meetings• Electronic media• Quarterly/annual

reports• Telephone

conferences

• Annual• Quarterly• Sporadic

• Outsourcing personnel• Asset protection• Personnel transport• Contracts• Social events• Support on health topics• Quality systems• Finished product requirements• GRI Materiality surveys • Customer/supplier evaluations

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29

THROUGHOUT 2015, WE PRODUCED VERY POSITIVE RESULTS THROUGH THE LAUNCH OF NEW PRODUCTS, MARKET SHARE GAINS AND THE CONSTANT FOCUS OF OUR VALUABLE TEAM OF COLLABORATORS ON TECHNOLOGY, PRODUCTIVITY, COMPETITIVENESS, SERVICE AND QUALITY.”

— Eugenio Madero, Rassini CEO

Economic Results

GRI DMA Once again, Rassini continued to show strong development during 2015 in North America, recording a 21% increase as a result of the continued strengthening of the automotive industry and the increase in market share obtained by the Brake Division. These factors contributed to the 22% and 20% growth compared to 2014, in the Suspensions and Brakes Divisions, respectively.*

* For more information click: http://www.rassini.com/reportesTrimestrales.html

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8.4%Compared to

2014, sales grew


31

2015 2014

Net income $12,897,243 11,900,277

Thousand pesos

Of the net income by region in 2015, 78% derived from Mexican companies; i.e. $10,081,588 (thousand pesos).

Rassini reached record results by reporting its highest sales, EBITDA and Net Profit during 2015, and the highest fourth quarter in Rassini’s history in terms of sales and EBITDA. Sales continued to rise in the North American region, Rassini’s main market, as a result of higher local demand and the market share won by the Brake and Suspension divisions, as well as the continued momentum of existing contracts (BMV Quarterly Report)

22%Outside Mexico

78%Mexico

NET INCOME BY REGION 2015

30%Outside Mexico

70%Mexico

NET INCOME BY REGION 2014

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R ASSINI ˜ Economic Results

G4-EC1, G4-EC8

Generated economic value 2015 2014 2013

Income 10,081,588 8,316,750 6,760,537

Costs and spending 7,720,943 6,667,558 5,387,548

2,360,645 1,649,192 1,372,989

Distributed economic value

Collaborators 994,767 813,842 714,943

Government 349,588 181,286 600,631

Investors (profit for the year) and participation in affiliated companies 807,430 484,461 -252,285

Comprehensive Financing Result (RIF) 208,860 169,603 309,700

2,360,645 1,649,192 1,372,989

Thousand pesos

G4-EC4In 2015, Rassini received economic support from government entities to develop our productive processes inside the plants, as shown below:

Economic support from government entities 2015 2014 2013

TOTAL $3,101,834 $6,065 $6,979

This information includes only support received for the Piedras Negras Suspension plant and the Puebla Brake plant. Figures are in Mexican pesos.

The “advanced engineering in products and processes” team develops lighter suspension components with reinforced materials and an alternative thermal treatment process to achieve even lighter products. Rassini’s Digital Design Program (Proceso de Diseño Digital de Rassini, PDDR), integrates various digital analysis tools that reduce product development time by 60%.

Suspensions and Innovation


33

Our Rassini Brakes and Suspensions plants consistently meet the applicable environmental standards. However, our long-term objective is to go a step further to anticipate environmental impacts and be more proactive in the continuous improvement of our processes.

Rassini Brakes is aware of the environmental and industrial safety risks that may arise during the course of operations, therefore, it has implemented a Comprehensive Management system that covers the specifications of ISO TS16949 quality, ISO 14001 environmental care, and OHSAS 18001 safety; the system ensures good performance across all three areas. This approach focuses on prevention and continuous improvement in the context of activities that might pose a risk to the environment and society.

Rassini Suspensions has developed an Environmental Management system based on ISO14001, obtaining Clean Industry Certification up to 2016.

Since 2013, we have voluntarily adhered to the Global Compact to strengthen our initiatives in the Protection of Human Rights and Labor Rights, the Environment and Anti-corruption.

As of this year, we are using the guidelines of NMX-14064-1 as reference to develop our GHG emissions inventory system, which enables us to increase the reliability of our reports.

Environmental Results

GRI DMA For the second consecutive year, our environmental performance disclosure is based on our materiality analysis which considers the relevant topics.

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35

As part of this environmental management, we established metrics for fuels and water monthly consumption to improve our savings initiatives. These objectives are defined annually in collaboration with key personnel to verify their viability and establish monitoring plans.

In addition, the environmental management systems let us define the Environmental Management Policy. Among the objectives we have proposed are:

• Compliance with environmental standards, regulations and laws• Development of personnel skills in the environmental management system• The rational use of natural resources. Continual improvement in raw materials and

processes that guarantee the reduction of waste to a minimum• Reducing contamination and environmental impact resulting from our operations

THE PROACTIVITY OF OUR PERSONNEL IN THE DEVELOPMENT OF PROPOSALS TO MINIMIZE OUR ENVIRONMENTAL IMPACTS IS PROOF OF THEIR DEGREE OF COMMITMENT TO THE CONTINUOUS IMPROVEMENT OF OUR ACTIVITIES.

Key inputs in operations

G4-EN1 Steel is the main resource used to manufacture our products. In Rassini Brakes production processes, a proportion of the steel used comes from high quality scrap. Rassini Suspensions does not use scrap due to the specifications required by the final product.

STEEL

Plant 2015 2014

Brakes (Puebla) 106 104

Suspensions (Piedras Negras) 223 215

Figures in thousand tons

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R ASSINI ˜ Environmental Results

Furthermore, we strive to use only the highest quality inputs and to ensure that our suppliers are known companies authorized to sell such products through our quality control policies.

WITH THE AIM OF HELPING TO REDUCE WASTE IN OUR LOCATION, WE USE HIGH QUALITY SCRAP IN OUR PRODUCTION PROCESSES.


37

ProductionOur production has increased over recent years, both in the Brakes plant (Puebla) and Suspensions plant, reflecting the efforts of each and every one of our collaborators.

The average increase reported is 3.6%, compared to 2014.

OVER THE YEARS, WE HAVE WORKED ON THE DESIGN OF OUR PRODUCTS TO ENSURE THE EFFICIENT USE OF STEEL; WE HAVE ALSO ENHANCED FUEL EFFICIENCY BY PRODUCING LIGHTER PRODUCTS THAT REDUCE THE VEHICLE’S TOTAL WEIGHT.

WE HAVE INCORPORATED EVER MORE SOPHISTICATED COMPONENTS THAT IMPROVE VEHICLE BEHAVIOR AND REDUCE NOISE WHILE RUNNING.

PRODUCTION IN TON/YEAR

0

50000

100000

150000

200000

250000

147,105 142,405118,556

223,061 214,758

167,832

Brakes Plant (Puebla) Suspensions Plant (Piedras Negras)

2015 2014 2013

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Fuel Consumption and Greenhouse Gas (GHG) EmissionsGRI DMA In terms of energy, our main fuels are: natural gas, liquid petroleum gas, diesel and electricity. We monitor our consumption through census by production line and by direct measurement in some of our processes. We are working on the implementation of a measurement system that enables us to identify those points in our processes with highest energy demands.

AS PART OF OUR BEST PRACTICES, WE DO NOT OPERATE EQUIPMENT DURING THE PEAK PRODUCTION HOURS OF THE ELECTRICITY BOARD (COMISIÓN FEDERAL DE ELECTRICIDAD, CFE)

G4-EN3In 2015, our total electricity and fuel consumption was 2,566,080 Gigajoules (GJ) where 60.8% was from the use of natural gas and other fuels, and 39.2% from electricity, which are the main sources of energy for Rassini.

Consumption (GJ) 2015 2014 % variation

Total 2,566,080 2,297,391 11.7%

In 2015, our average fuel intensity was 6.93 GJ per ton produced, which is higher than the previous year (6.43 GJ/t produced).

GRI DMANatural gas and electricity are our primary sources of power, and therefore represent the main sources of greenhouse gas emissions.

THIS YEAR, WE CONDUCTED AN ESTIMATION OF GHG EMISSIONS IN ACCORDANCE WITH THE GENERAL LAW FOR CLIMATE CHANGE REGULATIONS FOR THE NATIONAL EMISSIONS REGISTRY (REGISTRO NACIONAL DE EMISIONES, RENE), AND UNDERTOOK THE COMMITMENT TO IMPROVE OUR GHG INVENTORY QUALITY MANAGEMENT SYSTEM IN ORDER TO HAVE A RELIABLE BASIS FOR OUR MEASUREMENTS AND IMPLEMENT IMPACT STRATEGIES TO REDUCE OUR GHG EMISSIONS.


39

G4-EN15, G4-EN16In 2015, Rassini emitted a total of 218,313 tCO2e, 40% by direct sources and 60% by indirect sources, i.e. fossil fuels and electricity, respectively.

Emissions in tCO2e 2015 2014

Brakes Plant

Scope 1 13,367 11,504

Scope 2 101,513 98,689

Subtotal 114,880 110,193

Suspensions Plant

Scope 1 74,758 63,819

Scope 2 28,675 25,277

Subtotal 103,433 89,096

TOTAL 218,313 199,289

Note: The GHG emissions inventories were updated in relation to emission factors and calorific values of 2014 and 2015, so figures presented in the 2014 Report may vary.

G4-EN18In 2015, our CO2e emissions intensity per ton produced was on average 0.59 tCO2e/ton produced; the figure for the previous year was 0.56 tCO2e/ton produced. Our challenge is not to merely maintain the same GHG emissions behavior, but also to reduce it in the near future.

HGH EMISSIONS IN SUSPENSIONS PLANT

40000

50000

60000

70000

80000

90000

100000

110000

120000

130000

140000

89,096

103,433

Year 2014 Year 2015

tons produced

HGH EMISSIONS IN BRAKES PLANT

50000

60000

70000

80000

90000

100000

110000

120000

130000

140000

150000

110,193 114,880

Year 2014 Year 2015

tons produced

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G4-EN6, G4-EN19We have developed energy efficiency projects in lighting installations for the Puebla plant, estimating an annual saving of 935,151 kWh in our electricity consumption. In addition, we installed a photovoltaic panel system that generated 43,051 kWh of electricity, which was used in the administration building.

We began with campaigns directed to our employees for the responsible use of electricity, focusing on raising awareness to only use it as long as necessary. We also have a portfolio of projects in process aimed at efficient energy use.

To help our customers meet the Corporate Average Fuel Economy (CAFE) standards, the Rassini Suspensions plant optimizes products through designs created in the Advanced Engineering department; recently, new processes and the application of finite elements allowed us to reduce masses to the maximum, but we are still working on new alternatives and designs to reduce them further. We also invested in the acquisition of new equipment that allows savings on natural gas consumption in the coiling process.


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Initiatives to Reduce our GHG Emissions

Since 2014, we have carried out a number of actions in the spring line of the Suspensions plant in order to save energy. The investments amounted to $81,031 USD and have produced savings to the tune of $93,998 USD.

Projects 2016-2017

• Installation of more efficient burners in the austenitizing furnace, prototype line, to reduce gas consumption

• Installation of photovoltaic cells to make consumption in the office area independent from the grid

• Installation of full spring line with cold coiling technology • Update of NEMA motors for pumps in cooling tower and reduced controlled

startup• Update of hydraulic units of bending and loading machines of Line 1 and HS with

servomotor to reduce electricity consumption during periods when the machine does not demand hydraulic power

• Update of dual-stage compressor with inverter to save electricity consumption • Change of boiler for pretreatment tanks in the paint line

Actions 2014-2015

• Change of HS light fixtures, total lamp consumption • Now: 117,734 kWh Previously: 220,460 kWh• Change of Line 1 light fixtures, total lamp consumption • Now: 67,160 kWh Previously: 12,925 kWh• Reduce the use of aerosol paint cans in the paint area• Eliminate industrial ventilators to reduce electricity consumption and ambient

noise• Program to calibrate the furnace burners and controllers to improve combustion

and reduce gas consumption and air emissions.

Our short-term projects represent investments of $11,161,830 USD and will be executed starting in 2016. We expect to record savings of $3,582,306 USD in the first year.

42


Thanks to these investments, Rassini

has managed to break the Business As Usual circle of energy consumption and

CO2e emissions. With the start up of new projects we strive for a more efficient energy

consumption in our operations.


43

Water Consumption and DischargeGRI-DMAWater is another input in our processes and we are aware of the importance of using the resource responsibly. In Rassini, we have established monthly metrics as a control and monitoring strategy of our consumption.

We are now considering direct metering, which enables us to determine water consumption by production line. We expect to have metering equipment installed in the short term to help us identify the points of highest water consumption.

G4-EN8Our consumption in 2015 amounted to 499,122 m3 from groundwater and municipal water for our Brakes and Suspensions plants, respectively.

Source 2015 2014 % Variation

Well water 213,087 199,926 6.6 %

Municipal water 286,035 262,105 9.1 %

Total 499,122 462,031 8 %

In 2015, our average water consumption intensity in m3 per ton produced was 1.35 m3/ ton produced, which is slightly below last year’s figure (1.29 m3/ton produced).

G4-EN22, G4-EN26We continually monitor our waste water discharge through certified laboratory analysis to comply with the maximum permissible limits of pollutants. In most cases it is redirected to the local sewer networks.

Our Puebla plant has a wastewater treatment plant to maintain the levels of pollutants below the standards set by law. This year, we modernized the process to remove soluble oils in the treatment plant to improve the quality of our greywater.

44


Brakes. In 2015, we discharged a total of 38,021 m3. This is a reduction on the water discharged in 2014. Our water discharge intensity in m3 per ton produced was 0.26 m3/ton produced, less than the previous year (0.29 m3/ton produced).

We reduced our water discharge intensity by 11.4% in 2015 compared to the previous year.

Discharge in m3 2015 2014 % Variation

Waste water 38,021 41,538 -8.47%

G4-EN9The waste water from services and processing in the Brake plant is treated by physico-chemical and biological processes for discharge into the River Atoyac.

In 2014, with an investment of one million pesos, an ultrafiltration treatment plant was purchased for the machining soluble oil residue.

Suspensions. In 2015 we discharged 89,370 m3, which is 30% of the equivalent intake volume. This discharge is taken by estimate based on the quarterly studies reported in flow L/s, which represents the water discharge intensity in m3 per ton produced at 0.40 m3/ton.


45

Waste Management

GRI-DMAOur waste is primarily generated during the transformation of raw materials into final products, equipment maintenance and the packaging of our final products.

As part of our environmental management systems, we have operational control procedures for waste management. Waste classified as hazardous is sent to authorized third parties for adequate final disposal, in accordance with current regulations.

The waste generated in the Mexico plants is mainly classified as hazardous and non-hazardous. The first includes paint residues, contaminated solids, fluorescent lamps and oils; the second is largely domestic waste, steel shavings, plastic and cardboard.

G4-EN23

GENERATION OF SPECIAL AND HAZARDOUS WASTE IN RASSINI PLANTS

Brake Plant 2015 2014

Special handling

Residual sand (ton) 63,372 -

Trash (ton) 177 153

Hazardous waste

• Paint sludge, rags, gloves, etc. (ton) 52 45.41

• Residual oil (liters) 11,800 -

Suspension Plant

Special handling

• Sawdust, plastic, cardboard, brick, shavings, burrs, scrap (ton) 14,373 13,993

Hazardous waste

• Paint, sludge, batteries, lamps, waste oil, polluted water, among others (ton) 354 402

It is worth noting that some of our waste is valuable. Such is the case of waste sand, which is used in the cement industry as an alternative fuel.

46


We encourage waste separation to

make recycling easier and started a campaign to use returnable platforms

to transport our final products


47

GRI DMA

Rassini’s actions as a company committed to corporate responsibility are reflected in our support of education, to promote culture and the practice of sports, attention to health and safety of personnel, broadcasting of programs to raise environmental awareness and promotion of self-development in the communities where we operate, with whom we constantly seek a harmonious relationship based on trust, friendship and respect.

Rassini’s commitment to the communities in which it operates goes beyond job creation and translates into specific actions aimed at strengthening their autonomous development. Rassini expresses its social commitment through formal liaison programs, to be recognized as a committed company, a factor in regional development and as a good neighbor.

Social Results

Collaborators

GRI-DMA, G4-HR5, G4-HR6Rassini is a company that seeks social inclusion. We have recruitment and selection policies designed to guarantee non-discrimination throughout the procedure, fostering respect for human rights. In addition, Rassini’s Code of Ethics and Conduct establishes, among other things, working conditions that are free of child labor, forced labor, harassment and discrimination, respecting the right to free association and offering health and safety; mechanisms to prevent acts of corruption and conflicts of interest and promote transparency; and procedures for inquiries, suggestions and complaints through an Ethics Committee.

Recognizing the contribution of our collaborators, providing working conditions that are conducive to professional development and personal balance, stimulating creativity and providing the training that contributes to optimal performance are the mainstays of human resource management and have made Rassini a major competitive company offering top quality products to the industry.

48

We have implemented local

development, impact assessment and community

engagement programs within the Suspension and Brake plants covering

of the planned programs

96%


49

*In 2015 Rassini employed 4,017 collaborators for the Brakes and Suspensions plants and the Head Offices

*For more information check the Social Annex.

96%Men

4%Women

EMPLOYEES BY GENDER

25%Brakes

73%Suspensions

EMPLOYEES BY REGION

1%Directors

16%Employees

EMPLOYEES BY CATEGORY

G4-10Employees percentages

83%Unionized

2%Headquarters

50

R ASSINI ˜ Social Results

In 2015, we registered 1,388 new hires including unionized and trust personnel, 5% more hires than in 2014.

TURNOVERWe have motivational programs and career strengthening plans that add value to our employees' professional training, maintaining a lower turnover rate than previous years.

2%Women

98%Men

NEW HIRINGS BY GENDER

G4-LA1Hiring percentages

8%Brakes

91%Suspensions

NEW HIRINGS BY REGION

1%Headquarters

20.2%Less that 30 years old

NEW HIRINGS BY AGE GROUP

79.8%Between 30and 40 years old

TURNOVER RATE INDICES

0

1

2

3

4

Brakes plant

2.12 2.16 2.04

2.9

1.67 1.63

1 1 1

Suspension plant Headquarters2015 2014 2013 2015 2014 2013 2015 2014 2013


51

GRI G4-LA2We have a job evaluation policy that provides compensation for our personnel, placing them competitively in the job market. This allows us to attract and retain skilled personnel that have a high potential for development. This is done by objectively measuring job descriptions based on the following three factors: Know-how (skills), Thinking (problem solving) and Action (accountability for results).

Rassini has a category assignment procedure for unionized employees that it applies impartially in its Plants.

The following are some of the benefits that employees enjoy, regardless of their working hours:

In 2015 we were able to provide 154,640 man-hours of training on various topics, including induction into the company, Code of Ethics and Conduct and Human Rights.

• Annual bonus • Savings fund• Vacations• Vacation pay

• Marriage benefits • Childbirth and death of

relatives support

• Grocery vouchers • Life insurance• Punctuality award• Personnel transportation

• Cafeteria • Uniforms• Major medical expense

insurance • Scholarships

52


Training

GRI DMA We have worked on developing and strengthening the e-Learning system of Mi Formación, Rassini’s training and development program so that, using an online platform, personnel may have access to various training mechanisms and receive self-training which is subsequently validated by their immediate supervisor. This allows job opportunities to be covered and contributes to the achievement of operational objectives.

We use the e-Expediente (e-Record) system, which manages the training plan within operational plants based on the four development plan inputs: Job-Person matching, Career Path, Strategy and System Nonconformities.

Average of

38hrs. per plant employee


53

GRI G4-LA9TRAINING BY GENDER

2015 2014

Men Women Men Women

Number of employees 3,874 143 3420 175

Total training hours 145,388 9,252 148,331 10,538

0 10 20 30 40 50 60 70 80

AVERAGE TRAINING HOURS / EMPLOYEE / GENDER

60.2

43.4

64.7

37.5

women

men

women

men

2014

2015

19.20%Employees

79.20%Unionized

TRAINING BY LEVEL (MAN HOURS)

1.01%Directors

0.58%Managers

NUMBER OF HOURS PER LEVEL 2015

0100002000030000400005000060000700008000090000100000110000120000130000140000

Directors

122,491

29,689

8981,562

Managers Employees Unionized

54


55


Safety and Health

GRI DMA Rassini’s integrated management system policy reflects our commitment to preventing damage and risks to the environment, community, personnel and facilities. We make rational use of natural resources, optimizing energy consumption, reducing waste generation, substituting aggressive environmental inputs and training personnel in Quality, Safety, Occupational Health and Environmental awareness.

We have established on-site, health and safety committees in which our employees participate, helping to monitor and control the risk management programs already in place for employees, their families and the community in general.

Annual medical examinations are performed based on the procedure established within our management system to measure the health conditions of employees who are exposed during their work activities.

G4-LA6 The main safety rates for Rassini Brakes and Rassini Suspensions plants are shown below.

MAIN RATES

2013 2014 2015

Total number of fatalities AF 0 0 0

Injury rate IR 2.49 2.30 2.99

Occupational disease rate ODR 0.17 0.29 0.15

Lost day rate IDR 0.48 0.38 0.53

Accident rate IA 0.03 0.02 3.92

Absenteeism rate TA 2.83 2.62 0.87

Frequency rate IF 8.80 3.55 12.24

Severity index IG 0.09 0.05 0.34

Loss index IS 0.41 0.09 1.35

RELEVANT INFORMATION

100% of Rassini employees are represented by formal health and safety committees established in the plants.

No occupational diseases have been reported by employees due to occupational hazards or exposure to work activities.

The goal is to reduce minor lost-day accidents by 20% compared to the previous year.

Health fairs are promoted that include vaccination and anti-obesity campaigns, preventive health talks and other benefits offered to both employees and their families.

56


0

1

2

3

4

INJURY RATE

2013 2014 2015

2.49 2.3

2.99

0.0

0.1

0.2

0.3

0.4

OCCUPATIONAL DISEASE RATE

2013 2014 2015

0.17

0.29

0.15

0.0

0.1

0.2

0.3

0.4

0.5

0.6

LOST DAY RATE

2013 2014 2015

0.48

0.38 0.53

0

1

2

3

4

5

ACCIDENT RATE

2013 2014 2015

0.03 0.02

3.92

0.0

0.5

1.0

1.5

2.0

2.5

3.0

ABSENTEEISM RATE

2013 2014 2015

2.832.62

0.87

0.0

2.5

5.0

7.5

10.0

12.5

15.0

FREQUENCY RATE

2013 2014 2015

8.8

3.55

12.24

0.0

0.1

0.2

0.3

0.4

0.5

SEVERITY INDEX

2013 2014 2015

0.090.05

0.34

0.00

0.25

0.50

0.75

1.00

1.25

1.50

LOSS INDEX

2013 2014 2015

0.41

0.09

1.35


57

CommunityGRI DMABeing committed to the community, we have developed and organized health fairs, disease awareness and prevention campaigns throughout the year, along with activities to which we invite our employees' families and the community to participate. In addition, we organize courses in our Business Units that focus on useful and practical topics for everyday life.

In contingency and/or emergency situations that affect communities, we stand in solidarity and support those affected with financial or material donations and we work directly in affected areas to perform clean-up, organization and repair work.

Human Rights G4-HR2Rassini offers all its employees 2,597 training hours on the Code of Ethics and Conduct and Induction to Corporate Social Responsibility, strengthening Rassini's corporate goal and promoting joint and synergistic collaboration with customers, suppliers, employees and the community, thereby generating profitability for shareholders, sustainable development and a high levels of quality of life.

58


GRI DMA, G4-SO1, G4-SO2 G4-SO3, G4-SO4Rassini joins C-TPAT and NEEC initiatives because both enable better protection of information, assets, facilities and personnel, preventing them from being used for purposes that are detrimental to the company.

The C-TPAT (Customs-Trade Partnership Against Terrorism) is an anti-terrorist initiative by the CBP (US Customs and Borders Protection), between the US Government and the private sector whose aim is to build cooperative relationships that strengthen the security of the entire supply chain and border security. It encourages industries to take steps to prevent commercial cargo from being contaminated with illegal or undeclared substances, such as weapons, drugs or explosives.

The New Scheme for Certified Companies (Nuevo Esquema de Empresas Calificadas, NEEC) is a Mexican program that seeks to strengthen the security of the foreign trade logistics chain by implementing internationally recognized, minimum security standards in coordination with the private sector, and grants benefits to participating companies.

G4-SO5We have not received any formal complaint in which corruption-related risk criteria is applied. However, we are continuously carrying out programs to disseminate the Code of Ethics and Conduct to 100% of personnel across all plants and offices on these topics.


59

Suppliers

GRI-DMA, G4-EN32, G4-HR4, G4-HR5, G4-HR6The company is highly committed to corporate culture, the environment, community development, communication, dissemination and transparency in everything it does. Thus, Rassini suppliers are an essential part of the value chain. Therefore, in adherence with the Corporate Involvement Policy for RSC Suppliers, we included indicators in the electronic questionnaires for the purchasing department which were added to the indicators to be assessed during scheduled visits. In 2015, the Suspensions Plant included in its evaluation questionnaires topics regarding human and labor rights along with social bonding, safety and environmental care. Between January and October we visited 25 national and foreign suppliers who were evaluated in terms of quality, regulatory compliance and social responsibility. In no case were any violations detected regarding human or labor rights.

During 2016 a supplier evaluation system will be implemented in the other business areas to detect social responsibility.

60



61

62



63

PRODUCCIÓN PLANTA FRENOS PLANTA SUSPENSIONES

PRODUCTION 2015 2014 2015 2014

Tons of product 147,105 142,405 223,061 214,758

ENERGY CONSUMPTION (GJ)

Gasoline 1,264 1,261 887 605

Diesel 1,266 1,104 9 14

Natural gas 218,136 186,364 1,293,378 1,102,047

LP gas 14,300 13,277 31,710 28,994

Acetylene 68 61 110 121

Electricity 804,952 782,557 199,846 180,984

Clean energy 155 NA NA NA

Energy intensity (GJ/t prod.) 7.07 6.91 6.84 6.11

CO2E EMISSIONS (TON)

Scope 1 (tCO2e) 13,367 11,504 74,758 63,819

Scope 2 (tCO2e) 101,513 98,689 28,675 25,277

Emission intensity (tCO2e/t prod.) 0.78 0.77 0.46 0.41

WATER CONSUMPTION (M3)

Well water 213,087 199,926 NA NA

Municipal water NA NA 286,035 262, 105

Water intensity (m3/t prod.) 1.45 1.40 1.28 1.22

Waste water 38,021 41,538 89,370 -

Intensity of waste water discharge (m3/t prod.) 0.26 0.29 0.40 -

SPECIAL WASTE MANAGEMENT

Special waste m. 63,549 153 14,373 13,993

Solid hazardous waste (ton) 52 45.41 354 402

Liquid hazardous waste (liters) 11,800 - - -

Environmental Annex

64

R ASSINI ˜ Anexos

ASPECTOS PLANTA FRENOS PLANTA SUSPENSIONES OFICINAS CENTRALES

NUMBER OF EMPLOYEES 2015 2014 2015 2014 2015 2014

Men 952 864 2,880 2507 42 49

Women 55 86 70 72 18 17

Total number of employees 1007 950 2,950 2579 60 66

Directors 3 3 1 1 8 8

Managers 9 11 16 13 12 12

Employees 228 199 388 346 40 46

Unionized 767 737 2,545 2219 - -

Total 1007 950 2,950 2579 60 66

NEW HIRES

Men 97 134 1254 1136 6 7

Women 16 26 11 9 4 4

Unionized 73 123 1195 1116 - -

Trust 40 37 70 29 - -

Total number of new hires 113 160 1265 1145 10 11

EMPLOYEE TURNOVER

Turnover rate index 2.12 2.16 2.9 1.67 1 1

TRAINING

Hours training men 56,321 55,732 87,856 91,941 1,211 658

Hours training women 6,004 5,547 2,872 4,839 376 152

Hours training directors 576 8 26 320 960 68

Hours training managers 462 814 256 159 180 180

Hours training employees 13,876 12,854 15,366 9,204 447 458

Hours training unionized employees 47,411 61,280 75080 87,097 - -

Total number of training hours 62,325 74,956 90,728 96,780 1,587 810

SAFETY INDICES

Total number of fatalities 0 0 0 0 - -

Injury rate 1.31 0 1.69 2.3 - -

Occupational disease rate 0 0 0.16 0.29 - -

Lost day rate 0.24 0 0.29 0.38 - -

Accident rate 2 0 2 0.02 - -

Absenteeism rate 0.85 0.75 0.02 0.27 - -

Frequency rate 3.82 3.55 8.421 11.30 - -

Severity index 0.05 0.05 0.29 0.37 - -

Loss index 0.1 0.09 1.25 2.13 - -

Social Annex


65

GRI G4-32

Index for GRI Content

66

indicator description page/statementexternal

assuranceglobal compact

principles

STRATEGY AND ANALYSIS

G4-1 CEO's statement 2 NO

ORGANIZATION PROFILE

G4-3 Report the name of the organization 4 NO

G4-4 Report the primary brands, products, and services 4 NO

G4-5 Location of the organization's headquarters 4 NO

G4-6 Countries with operations 4 NO

G4-7 Nature of ownership and legal form 4 NO

G4-8 Markets served 8 NO

G4-9 Scale of the organization

Number of employees at group level: 5,797Main financial figures for the organization can be found in the 2015 Financial Report. www.rassini.com/informesAnuales.html

NO

*G4-10 Employment 50 NO YES

*G4-11 percentage of total employees covered by collective bargaining agreements

To ensure and support labor rights, collective work contracts made with unionized staff are reviewed. This represents coverage of 82% of all employees.

NO YES

G4-12 Supply chain 12 NO

G4-13 Significant changes during the covered period

No significant change was recorded in terms of the Company's size, structure, corporate capital or pro-perty, such as openings, closings or expansions that would have a significant impact on operational and financial aspects.

NO

G4-14 Precautionary principle 14 NO

G4-15 Social, environmental and economic programs and initiatives

14• United Nations Global Compact• Decalogue Socially Responsible Company - Mexi-

can Center for Philanthropy (CEMEFI)• Clean Industry - Secretariat of Environment and

Natural Resources (SEMARNAT)• CSR Commitment - AIAG Automotive Industry

Action Group

NO

G4-16 Memberships of associations 17 NO

MATERIAL ASPECTS AND COVERAGE

G4-17 Operational structure

The information presented in this document is for the headquarters in Mexico City, as well as for the plants in Piedras Negras, Coahuila and San Martin Texmelucan, Puebla. Inside the 2015 financial report, the entire operational structure of the group can be consulted.

NO

G4-18 Content definition 22 NO

G4-19 Material aspects 25 NO


67



principles

G4-20 For each material Aspect, report the Aspect Boundary within the organization 24 NO

G4-21 For each material Aspect, report the Aspect Boundary outside the organization 24 NO

G4-22Effect of any restatements of information provided in previous reports, and the reasons for such restatements

No restatements of information contained within the sustainability report regarding the nature of the business, indicator calculation methods, mergers and acquisitions are presented.

NO

G4-23 Significant changes from previous reporting periods in the Scope and Aspect Boundaries

No significant changes in the coverage and scope of the report compared to the previous year are pre-sented.

NO

PARTICIPATION OF STAKEHOLDERS

G4-24 Stakeholders linked to the organization 26 NO

G4-25 Definition of stakeholders with which we work 26 NO

G4-26 Communication with stakeholders 26 NO

G4-27 Important issues for stakeholders 26 NO

REPORT PROFILE

G4-28 Reporting period The reporting period for the report includes the in-formation presented from January 1 to December 31, 2015.

NO

G4-29 Date of most recent previous report January - December, 2014 NO

G4-30 Reporting cycle The reporting cycle is annual. NO

G4-31 Contact point for questions regarding the report or its contents 76 NO

G4-32 Location of the basic contents of the report66

The GRI G4 reporting option for the 2015 sustainabi-lity report is "CORE”

NO

G4-33 External verification The 2015 report is not subject to external verification by a third party. NO

GOVERNANCE

G4-34 Governance structure of the organization 18 NO

ETHICS AND INTEGRITY

G4-56 Values, principles, standards and norms of behavior such as codes of conduct and codes of ethics 20 NO

68

R ASSINI ˜ Índice de Contenidos GRI



principles

ECONOMIC CATEGORY

AE1 ECONOMIC PERFORMANCE

G4-DMA Management approach 30

G4-EC1 Direct economic value generated and distributed 33 NO

G4-EC3 Coverage of the organization's defined benefit plan obligations

We have pension plans and seniority premiums that are funded through trust fund payments based on actuarial calculations.See the 2015 annual report at www.rassini.com/in-formesAnuales.html

NO

G4-EC4 Financial assistance received from government 33 NO

AE2 MARKET PRESENCE


G4-EC6Proportion of senior management hired from the local community at significant locations of operation

100% of managers in our plants are from the commu-nities where Rassini operates. NO

AE3 INDIRECT ECONOMIC IMPACTS


G4-EC8 Significant indirect economic impacts, including the extent of impacts 33 NO

AE5 INNOVATION

G4-DMA Management approach 33 NO

ENVIRONMENTAL CATEGORY

AA1 MATERIALS BY WEIGHT AND VOLUME


*G4-EN1 Materials used by weight or volume (raw material/input) 36 NO YES

AA2 ENERGY


*G4-EN3 Internal energy consumption 39 NO YES

*G4-EN6 Reduction of energy consumption 41 NO YES

AA3 WATER


*G4-EN8 Total water withdrawal by source 44 YES

*G4-EN9 Water sources significantly affected by withdrawal of water 45 YES


69



principles

AA5 EMISSIONS


*G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1) 40 NO YES

*G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2) 40 NO YES

*G4-EN18 Greenhouse gas (GHG) emissions intensity 40 NO YES

*G4-EN19 Reduction of greenhouse gas emissions 41 NO YES

AA6 EFFLUENTS AND WASTE


*G4-EN22 Total water discharge by quality and destination 44 NO YES

*G4-EN23

Total weight of waste by type and disposal method. Report the disposal methods (Rassini manages it, if a third party is hired to handle waste management, what is the procedure)

46 NO YES

*G4-EN24 Total number and volume of significant spills Within the reporting period, no significant acciden-tal spills occurred. NO YES

*G4-EN26

Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the organization’s discharges of water and runoff

44 NO YES

AA7 PRODUCTS AND SERVICES


*G4-EN27 Extent of impact mitigation of environmental impacts of products and services

We have established an environmental emergency plan in our management system in order to safe-guard the physical integrity of individuals working in the environment as well as the environment itself and the community.

NO YES

*G4-EN28 Percentage of products sold and their packaging materials that are reclaimed by category

Currently, all steel is 100% recycled and all material sold is recyclable or reused. NO YES

AA8 REGULATORY COMPLIANCE


G4-EN29Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations

During the reporting period, there were no fines or non-monetary sanctions regarding compliance with local and national environmental legislation

NO

AA11 SUPPLIER ENVIRONMENTAL ASSESSMENT


G4-EN32 Percentage of new suppliers that were screened using environmental criteria 60 NO

70

R ASSINI ˜ Índice de Contenidos GRI



principles

SOCIAL CATEGORY/LABOR PRACTICES AND DECENT WORK

AS1 EMPLOYMENT


*G4-LA1 Total number and rates of new employee hires and employee turnover by age group, gender and region 51 NO YES

*G4-LA2Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation

52 NO YES

AS3 OCCUPATIONAL HEALTH AND SAFETY


G4-LA5

Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs

Currently, 100% of the workforce is represented by these committees. An example of this is the Safety and Hygiene Commission which is represented by 34 (1%) individuals including employees at all levels of the organization at the Piedras Negras plant and 72 (5%) individuals at the Puebla brake plant.

NO

G4-LA6

Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender

56 NO

G4-LA7 Workers with high incidence or high risk of diseases related to their occupation

There have been no occupational diseases due to occupational hazards and employee exposure to work activities. This is entirely due to established plant safety policies.

NO

G4-LA8 Health and safety topics covered in formal agreements with trade unions

Mandatory provision of the personal protective equi-pment required for each work position as well as its mandatory use and care by the employee is included in the collective agreement and the internal labor regulations. The joint safety committee was esta-blished for this reason and meets regularly to verify compliance with these provisions.

NO

AS4 TRAINING AND EDUCATION


G4-LA9 Average hours of training per year per employee by gender, and by employee category 54 NO


71



principles

AS5 DIVERSITY AND EQUAL OPPORTUNITY

G4-LA12

Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity

65Makeup of Headquarter Offices: 20 officials (3 wo-men), 40 employees (15 women). 13% of personnel is over 50 years of age, 83% of staff is between 30 and 49, and 2% are between 18 and 29. And 10 out of 10 employees come from the local town and surroun-ding areas.

NO

SOCIAL CATEGORY/HUMAN RIGHTS

AS9 INVESTMENT


*G4-HR2

Total hours of employee training on human rights policies or procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained

58 NO YES

AS10 NON-DISCRIMINATION


*G4-HR3 Total number of incidents of discrimination and corrective actions taken

There are no cases of discrimination based on race, opinion, preference, religion, social background, etc. Nor are there any cases for disabilities. However, due to the nature of the physical activities that are per-formed at the plants, (physical work that requires effort), individuals with disabilities have not been permitted to seek employment at Rassini. In the case of women who have sought work at the plants, their stay has been short. This is because of the phy-sical effort required that leads them to seek lighter activities. Therefore, the ratio of men is greater in these areas.

NO YES

AS11 FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING


*G4-HR4

Operations and suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and measures taken to support these rights

In 2015 no threats to plants and/or their suppliers were presented. NO YES

AS12 CHILD LABOR


*G4-HR5

Operations and suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor

None of the contracts and agreements with suppliers have been questioned by Human Rights issues regarding child exploitation.

NO YES

72



principles

AS13 FORCED OR COMPULSORY LABOR


*G4-HR6

Operations and suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor

In 2015 no threats to plants and/or their suppliers were presented. NO YES

AS14 SECURITY PRACTICES


G4-HR7Percentage of security personnel trained in the organization’s human rights policies or procedures that are relevant to operations

20 NO

AS18 HUMAN RIGHTS GRIEVANCE MECHANISMS


G4-HR12Number of grievances about human rights impacts filed, addressed, and resolved through formal grievance mechanisms

During the period covered by this report, no inci-dents involving extortion, abuse, discrimination or any other human or labor rights violations were re-ported.

NO

SOCIAL CATEGORY/SOCIETY

AS19 LOCAL COMMUNITIES


*G4-SO1Percentage of operations with implemented local community engagement, impact assessments, and development programs

59 NO YES

*G4-SO2 Operations with significant actual or potential negative impacts on local communities 59 NO YES

AS20 ANTI-CORRUPTION


*G4-SO3Total number and percentage of operations assessed for risks related to corruption and the significant risks identified

59 NO YES

*G4-SO4 Communication and training on anti-corruption policies and procedures 59 NO YES

*G4-SO5 Confirmed incidents of corruption and actions taken 59 NO YES


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principles

AS23 COMPLIANCE


G4-SO8Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations

We have not received any fines or non-monetary sanctions for non-compliance with the legislation. NO

AS25 GRIEVANCE MECHANISMS FOR IMPACTS ON SOCIETY


G4-SO11Number of grievances about impacts on society filed, addressed, and resolved through formal grievance mechanisms

There have been no internal or external complaints. NO

SOCIAL CATEGORY/PRODUCT RESPONSIBILITY

AS26 CUSTOMER HEALTH AND SAFETY


G4-PR1Percentage of significant product and service categories for which health and safety impacts are assessed for improvement

6 NO

G4-PR2

Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes

There have been no incidents for noncompliance re-garding our products' safety and health. NO

AS29 CUSTOMER PRIVACY


G4-PR8Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data

Rassini has implemented monitoring and evalua-tion processes regarding potential risks related to privacy and confidential handling of customer infor-mation. These processes allow for the mitigation of incidents related to information security and define actions and controls to prevent incident recurrence.

NO

* Indicators aligned with the principles of the United Nations' Global Compact.

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G4-31We welcome any feedback about this report at [email protected]. For more information about our processes, products and performance, please visit the page http://www.rassini.com/ or our Corporate Headquarters located in Pedregal 24, piso 7, Col. Molino del Rey, Miguel Hidalgo, 11040 Mexico City, with Mr. Fernando Valdés Orozco, Corporate Vice President of Human Resources.

Pedregal 24, Floor 7Molino del Rey, Miguel Hidalgo11040 Mexico CityT. 52 (55) 5229 5800

@RASSINIautowww.rassini.com

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