Grupo Herdez Annual Report 2023

Board of
Directors

GRI 2-9, 2-10, 2-11, 2-12, 2-13 y 2-14

The highest governing body of the organization is the General Shareholders’ Meeting, while the Board of Directors —comprised of nine board members and chaired by Héctor Hernández Pons Torres, Chief Executive Officer of the Group— is responsible for monitoring and ethical compliance by Grupo Herdez^®. Together they make decisions to support a culture of legality and transparency, and to guarantee and maximize returns for all of our investors.

The Board of Directors meets quarterly and has intermediate bodies that oversee managing and carrying out the Group’s objectives, as well as the Company’s other indicators. Progress in sustainability matters is also presented during these meetings.

Sustainability
Strategy
(ESG)

In 2021, we created the Sustainability Committee, which is comprised of the Group’s Senior Management. This Committee falls under the Finance and Sustainability Division, which reports to Senior Management.

The Finance and Sustainability Division has Corporate Sustainability and Environmental Sustainability as part of its mandate, which, along with the technical areas, complement the team that is dedicated to complying with the Group’s sustainability strategy.

Recognition for our ESG strategy

Companies with the greatest progress in SDGs by “Empresas Verdes”

2° position

Merco’s 100 Most ESG Responsible Companies

6° overall position
3° position in the food sector

Merco’s 100 Most Ethically and Governance Responsible Companies

10° overall position

Merco’s Most Environmentally Responsible Companies

7° overall position

The 100 Most Responsible Companies in the internal sphere, clients and society of Merco

7° overall position

Alignedwithinternationaltrendsand references on environmental, social, and corporate governance matters (ESG), we have established three main sustainability objectives for the Group:

1. Management that employs ESG criteria.

2. Identify and mitigate potential social and environmental risks of operations.

3. Drive innovative sustainability projects in our brands.

Our sustainability pillars

We focus on 7 of the 17 Sustainable Development Goals (SDG) of the United Nations, to comply with Agenda 2030.

We are part of the Global Compact’s CFO Coalition initiative, which seeks to direct the commitments of the Coalition’s financial directors to earmark billions in corporate investments towards the SDGs, in order to drive the future of corporate finance and investments for growth, value creation, and social impact.

Grupo Herdez^® has adhered to the Global Compact of the United Nations since 2012. We have committed to prioritizing and working to fulfill its 10 principles, including achieving compliance of employees and strategic partners with an ethical and legal focus, as well as working against every type of corruption, including extortion and bribery. We also respect the right to collective bargaining.

In order to create an environment of trust and legality, our ethical culture furthers respect for both internal and external rules and policies. It encourages reporting acts that violate our Code of Ethics, laws, and the rules of socially accepted behavior.

The risk of fraud and corruption are managed through the Risks Committee. By monitoring complaints on the CONFIANZA Hotline, the factors that might cause a risk to materialize have been analyzed, and the Group is working with those responsible for addressing the risk, to identify and implement ways of administering and measuring that risk.

CONFIANZA hotline: 800-2663-42692

email: confianza@herdez.com