Creating Positive Impacts on the Environment
Sustainability is an essential part of our business strategy. Throughout our history, we have implemented several initiatives to drive community development and preserve natural resources. The Company adheres to the United Nations Global Compact, is a member of the Sustainable Index of the Mexican Stock Exchange, and has been recognized by CEMEFI as a Socially Responsible Company for seven consecutive years.
Regulatory Compliance
Compliance with regulations is an essential prerequisite for our operations. Therefore, we comply fully with laws and regulations in all countries where we operate.
Even before industry certifications such as ISO and FSSC were created, we already had internal systems to test our processes and ensure the quality and safety of all our products.
During the 90’s and 2000’s, the Group was a pioneer in Mexico of the ISO 9000 certification for a food plant and distribution center. It also received the first Food Safety System Certification 22000 (FSSC 22000) in Latin America, which is recognized by the Global Food Safety Initiative (GFSI).
At Grupo Herdez we adhere to our Code of Ethics, which all employees must strictly follow – regardless of their hierarchy level – and which extends to our external advisors and service providers. In order to ensure that our operations are carried out in adherence to this Code, employees have access to a hotline reporting system that protects informants and offers three formal channels of communication:
- Mailboxes at each location
- E-mail: confianza@herdez.com
- Toll-free number: 01 800 CONFIANZA (01 800 266 3426 92)
During the year, a total of 45 incidents were recorded and addressed; 89% of these have been resolved and the rest are under review. Each incident prompts a corrective action, which can range from a warning to dismissal for violations to the Code of Ethics. In 2014, ten employees were dismissed for incidents relating to corruption.To reinforce compliance with the Code of Ethics and General Policies, last year we launched a campaign with posters and internal TV screens, as well as e-mails with video spots.
This campaign put special emphasis on our Gender Equality policy, which guarantees that every employee has the same opportunities to develop his or her potential. This policy also includes guidelines on non-discrimination in terms of ethnicity, age, religious beliefs and disability. No reports relating to discrimination issues were received during the year, according to the definition of the term established by the International Labour Organization (ILO).
At Grupo Herdez we recognize the importance of protecting the Human Rights of our employees, suppliers and contractors. This is reflected in our Human Rights policy and in our Supplier Code of Conduct, which aims to strengthen sustainability throughout our supply chain.
Corporate Governance
The Board of Directors is the governing body of the Group and its Chairman is also CEO.
The Board meets at least quarterly and has intermediate bodies to oversee the management and execution of the Company’s goals. During Board meetings, a sustainability performance report is presented, which considers environmental performance and quality of life indicators for employees.
To avoid any conflicts of interest, each Committee has its own regulations to govern and limit the functions of the highest governing body. One of these consists of validating the compensation of the Company’s senior executives, including its CEO.
We create environmentally responsible surroundings
In recent years we have strengthened our initiatives, commitments and projects relating to environmental efficiency.
During 2014, our Supply Chain added sustainability key performance indicators to their goals, which apply as of January 2015.
Based on our Environmental Management Model, we established the following lines of action:
- Building green infrastructure, such as energy cogeneration projects with low CO2 emissions
- Increasing the use of clean energy and efficient use of current resources;
- Reducing water consumption in our processes;
- Increasing the percentage of recycling.
As members of the food industry, water is an essential resource with high levels of consumption in our manufacturing processes. In this regard, it is important to highlight that we have no significant impact on any water sources and that our consumption is low in comparison to other industrial, agricultural and urban activities. Furthermore, none of our manufacturing facilities are located within Natural Reserves or in areas with species threatened by industrial activity, as established by PROFEPA‘s General Act on Ecological Balance and Environmental Protection (Ley General de Equilibrio Ecológico y Protección al Ambiente).
During the year, we decreased our GHG (Greenhouse Gas) emissions by 7,978 tons as a result of the wind power generation project on the Isthmus of Tehuantepec, in the state of Oaxaca, which supplies energy to six of our facilities.
Protecting our biodiversity is key for the longevity of the Company, and it also provides us the possibility to offer various healthy and environmentally friendly products to our consumers. In this area, our main initiatives are:
During the year, we invested Ps. 30 million in eliminating waste, reducing emissions and preventing negative impacts on the environment, as well as on environmental management and protection.
We create positive linkages with the community
The development of the communities that surround us is a responsibility that we assume with enthusiasm. As such, in 2014, we invested Ps. 42 million in community projects, equivalent to 2.8% of our Net Income.
These efforts were undertaken through our Saber Nutrir® program and Fundación Herdez.
Saber Nutrir®
Originally called Herdez Nutre, this initiative was created in 2006 with the goal to improve eating habits in rural communities. In 2012, the program evolved into Saber Nutrir®, focusing on the improvement of nutrition conditions through education and the development of competencies. Today, the program reaches primary schools and rural communities in nine states across Mexico.
During the last annual volunteer day in August 2014, our employees donated 320 hours to the construction of 10 new productive projects in the Mazahua area, located in the State of Mexico. Additionally, through the initiative Padrinos Saber Nutrir (Saber Nutrir Sponsors), we seek to drive employee involvement to improve nutrition conditions among undernourished children. In this regard, the number of sponsors increased by 43%, and 69% of participating children recovered from undernourishment.
We monitored the program’s success in rural communities by means of a quarterly follow-up of the nutrition conditions of par- ticipating families, of which 55% remained stable, 28% improved, and 17% worsened.
In addition, we installed the first Germplasm Bank in the Mazahua community in order to foster the preservation of regional seeds and plants. This helps to protect the cultural and natural heritage of the area, where we also provide training to community members that enable them to produce their own food.
Fundación Herdez
Conceived in 1987 by Don Enrique Hernández-Pons as a nonprofit organization, Fundación Herdez seeks to preserve Mexican gastronomy and add value to basic foods through research in the anthropologic, social, historic and industrial fields.
To do this, the Foundation has a museum, a library and an interpretation center; all of which influence the cultural and educational aspects of the gastronomic field in Mexico.
During the year, the museum received 9,305 visitors and exhibited 426 pieces associated with Mexican gastronomy of which 18 belong to the collection of the National Museum of Anthropology and History.
Through its publishing program, Fundación Herdez received international recognition from UNESCO’s Memory of the World Programme for Latin America and the Caribbean for registering the book “El Cocinero Mexicano”, which dates back to 1831. It also published: “El mole: ofrenda de dioses, manjar de señores”, and “La Razón”. The latter retells the story of a young entrepreneur named Ignacio Hernández del Castillo, who years later would transform our Company.
During 2014, the interpretation center served as a venue for 13 academic events with 195 participants.
SABER NUTRIR ® 2014 RESULTS
In communities:
13 towns
1,243 beneficiaries
164 projects completed
31 sponsored children