INTEGRATED ANNUAL REPORT 2023
ES
PASyR: Sustainable and Regenerative Agriculture Program by its Spanish acronym
a team with
a long-term
vision
a team with
a long-term
vision

Water

As part of our water sustainability actions, we comply with Sustainable Development Goal (SDG) 6 Clean Water and Sanitation, of the Agenda 2030 of the United Nations (UN).

In 2022, we placed three billion pesos in sustainability-linked bonds, positioning ourselves as the first issuer in the food sector to issue this type of instrument in Mexico. With this issuance, we have committed to reducing our water consumption to 1.98 m3 / Tn produced by 2030.

Our 2023 goal was a production intensity of 2.16 m3/Tn, which goal we achieved, with a production intensity of 2.15 m3/Tn. This is a 5.3% reduction over the previous year, and an accumulated reduction of 17% compared to the 2018 baseline.

Sustainable and Regenerative Agricultural Program (PASyR)

This program allows us to make long-term agreements with local agricultural suppliers whose experience, combined with our best practices, ensures that consumers will have the highest-quality products at their table.

We employ practices that help fight climate change, use resources such as water efficiently, and protect biodiversity. As part of these efforts, we are aligned with SDG 2 Zero Hunger, and SDG 12 Responsible Production and Consumption.

In 2023, 146,265.28 tons of agricultural raw materials and bee products were acquired (both fresh and frozen), of which 72,800 tons were from providers that adhere to the PASyR. This number is 50% of the total amount of agricultural raw materials acquired.

PASyR 2023 Results
*PASyR: Sustainable and Regenerative Agriculture Program by its Spanish acronym

Un Legado Más Fuerte

The objective of the Un Legado Más Fuerte program, or, A Stronger Legacy, is to implement actions and to create a culture that is focused on protecting natural ecosystems. Through Del Fuerte® , we implemented an impact project in Ejido Topia, an agricultural center located in the northeast of the state of Durango, in the Eastern Sierra Madre mountain range, where 32 million m3 of water is produced due to the forest canopy.

The water basins located in this area supply water to some of the fields where tomatoes are grown for Del Fuerte®.

Reforestation, dam construction, waste collection, and awareness campaigns for the community have been underway since 2020, intending to keep the basins in optimal condition.

Best Sustainable Production Project
in the GOULA 2023 Awards

Waste,
recycling, and packaging
materials

As a company with a widely diverse portfolio and high market penetration, we know that our containers and packaging play an important role, not only in ensuring that our products arrive safely at consumers' tables but also in the construction of a circular economy.

In compliance with the goals of SDG 12 Responsible Production and Consumption, we have adopted an eco-design focus that prioritizes the use of mono materials for packaging, and we also make sure that all of these materials have a component of recyclability, reuse or redesign to mitigate environmental impacts.

98.1% of our packaging has characteristics of recyclability and/or is reusable.

129,529.89 Tn of recyclable and/or reusable materials were acquired in our packaging.




Management of post-consumption waste

Por un Mundo Más Vivo®

Por Un Mundo Más Vivo® is a movement backed by the Herdez® brand. It combines actions and advice to create responsible consumption habits to help protect the planet.

In 2023, 15.25 tons of cans were collected in partnership with Grupo Promesa and through Walmart’s Reciclamanía (Recyclemania) program, which was triple the amount collected in 2022. Together with Grupo Promesa, 1.7 tons of glass and 156 kg of multi-layer packages (Tetra Pak®) were collected.

In partnership with Grupo Promesa, 409 institutions received educational talks on the environment, impacting 14,366 people of different ages

Kitchen Garden: The reuse of disposable packaging to create kitchen gardens was encouraged by a limited edition of cans of Herdez® vegetables with seeded paper labels. During the year, 9,332,800 labels were produced.

Waste management

Energy

In accordance with the SDG goal 7 Affordable and Clean Energy, we impulse energy conservation and efficiency initiatives within our operation.

During the year, the ratio of energy intensity at our plants and distribution centers was 1.77 GJ/Tn produced, which is a 12.7% reduction over 2022.

Total consumption of energy was 1,116,257.00 GJ, 7.8% lower than consumption in the prior year. Energy was distributed as follows: Electricity: : 358,761.00 GJ
Fuels: 757,496.00 GJ

Energy

In accordance with the goals of SDG 7 Affordable and Clean Energy, we impulse energy conservation and efficiency initiatives within our operation.

During the year, the ratio of energy intensity at our plants and distribution centers was 1.77 GJ/Tn produced, which is a 12.7% reduction over 2022.

Total consumption of energy was 1,116,257.00 GJ, 7.8% lower than consumption in the prior year. Energy was distributed as follows: Electricity: : 358,761.00 GJ
Fuels: 757,496.00 GJ

ISO 5001:2018 Certification - Energy Management

Currently our McCormick® México, El Duque, and Helados Nestlé® plants have ISO 500001:2018 certification, which verifies that the facilities have a high-standard system for energy efficiency and safety, as well as a continuous improvement plan.

Emissions

As part of our contribution to SDG 13 Climate Action, we report the emissions from our operations year over year, always seeking to improve performance to fight climate change.

In tracking the emissions from plants and distribution centers, including direct emissions (mobile and fixed sources) and indirect (electricity from non-renewable sources), GHG emissions intensity in 2023 was 0.10 tons of CO2e/ton produced, which is similar to GHG emissions in 2022.

Total emissions emitted: 65,804 Tn (scope 1 and scope 2)

In tracking the emissions from plants and distribution centers, including direct emissions (mobile and fixed sources) and indirect (electricity from non-renewable sources), GHG emissions intensity in 2023 was 0.10 tons of CO 2 e/ton produced, which is similar to GHG emissions in 2022.

Carbon-neutral

digital campaigns

At the end of 2023, we implemented our first carbon-neutral digital campaign with the Frank’s® and French’s® brands. We implemented an emissions-tracking code on our digital announcements to calculate the emissions created by each click, so that we can purchase emissions-offsetting bonds in 2024.

Due to this report, this tool will also be implemented on the website in the Annual Report, to reduce the digital environmental footprint.


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