Sustainability report petstar 2016 by PetStar

2016 SUSTAINABILITY

REPORT

2016 SUSTAINABILITY REPORT PETSTAR

Contents INTRODUCTION PRESENTACIÓN 4 Who Are We?

2 del Director General 5 ·Carta Business Model Sustainable 3 de este Informe ·Acerca 6 Letter from the CEO ·Materialidad 7 About this Report

ENVIRONMENTAL PERFORMANCE

8 Materiality 11 PetStar and Sustainability 15 Inclusive Recycling

CORPORATE PROFILE

16 History 18 Corporate Governance ▶▶ Shareholder Map 20 Board of Directors 28 Philosophical Framework ▶▶ Ethical Conduct 32 Management Model ▶▶ Collection Mechanisms ▶▶ Collection Pocesses ▶▶ Recycling Processes 43 Market Customers 45 Membership in Associations ▶▶ PetStar’s Adherence to the Earth Charter USAGE GUIDE

THESE LABELS ARE REFERENCES TO THE GRI INDICATORS, THE EARTH CHARTER INDICATORS, SUSTAINABLE DEVELOPMENT GOALS, AND THE PRINCIPLES OF THE GLOBAL COMPACT.

GRI

THE EARTH CHARTER

SDG

THE GLOBAL COMPACT

ECONOMIC PERFORMANCE

48 Income Statement 49 Human Capital 57 Value Chain and Supplier Development

62 Energy and Fuels 63 Emissions ▶▶ Water ▶▶ Green Roof

04 05

SOCIAL PERFORMANCE

74 Alliances with Society 76 The Universidad Anáhuac Corporate Chair 76 Museum-Auditorium

OTHERS

83 Certifications and Recognition 86 Table of Indicators GRI

2016 SUSTAINABILITY REPORT PETSTAR

Who are we?

PetStar Sustainable Business Model

“The true road to sustainability in plastics is RECYCLING”. Jaime Cámara Creixell

What an encouraging feeling it is to know that our work, vision and values put us in a privileged, committed position: today we are a worldwide reference of excellence at the vanguard in Entrepreneurial Social Responsibility (ESR). That’s why at PetStar we form a family, a firm whose fundamental principle is sustainability. With the participation and commitment of our investors and allies –Arca Continental; Coca-Cola de México; Bepensa Bebidas; Corporación del Fuerte; Corporación Rica; Grupo Embotellador Nayar and Embotelladora de Colima in June 2013 we were recognized as the largest food grade PET recycling plant in the world, according to the prestigious British organization, PCI PET Packaging Resin and Recycling, Ltd. We will say it clearly: today we have the capacity to recycle 3,100 million bottles annually, which would fill the Azteca soccer stadium in Mexico City 2.4 times, to convert 50,000 tons of high quality food grade recycled PET. We have a business model that promotes the concept of inclusive recycling –we participate in the Inclusive Recycling Regional Initiative and our Collection Division developed the PetStar Inclusive Collection Model (MAIP)– 9 processes are presented in the appendices of this publication. To carry this out we have 8 collection plants strategically distributed around the country to provide certainty to scavengers and trash collectors who help the planet and the economy every day by picking up bottles; a revalorization plant for sub-products; and the recycling plant already mentioned. economics because our methods are aligned and integrated like the mechanisms of a clock; from the collection of a bottle to the incorporation of new bottles of recycled contents. Philosophically and conceptually we adhere, as you will discover in the following pages, to initiatives and organizations that define and sustain our profile: The Earth Charter; the Global Reporting Initiative (GRI) –in its G4 version, Sustainable Development Goals (SDG), and the Principles of the Global Compact.

We can say clearly without hesitation that our operation generates social, environmental and economic value, essential components of sustainability. So, we don’t understand advancement or progress without the calibration and balance of these three pillars the planet needs when this concerns the responsible use of its geography. Finally, and as an introduction to the contents of these are shared by companies that are born and continue to attend the needs of their consumers. For us, PetStar is the possibility to do business profitably, favoring social inclusion, life in harmony with and respect for the environment.

G4-1, G4-2

I, II, III, IV

1, 8, 11, 12, 16, 17

G4-3, G4-18, G4-22, G4-23, G4-26, G4-28, G4-29, G4-30, G4-31, G4-32, G4-48

I, II,III, IV

1-17

1, 2, 3, 4

“Facing the great environmental challenges for humanity, PetStar is the business leader in food grade PET recycling internationally, is located in Mexico and operated by Mexicans with the highest standards, which position us at the forefront of global sustainability trends, generating social, environmental and economic value, capitalized 100% in our country”. Jaime Cámara Creixell

GRI MAKING PET CONTAINER SUSTAINABLE

THE EARTH CHARTER

SDG

THE GLOBAL COMPACT

GRI

THE EARTH CHARTER

SDG

THE GLOBAL COMPACT

2016 SUSTAINABILITY REPORT PETSTAR

Letter from the CEO There is no turning back. The planet demands a different business vision and at PetStar we know that it is imperative for us business people to operate and project examples based on the principle of constructing just democratic, sustainable, participative societies. That is why we offer you our First Sustainability Report 2016, a document prepared under the parameters and foundations of the Global Reporting Initiative (GRI), in its G4 version, the Earth Charter, the Sustainable Development Goals (SDG) and The Principles of the Global Compact. Thus, we show our commitment to transparency and empathy for generating social value, environmental value and economic value for our interest groups, situated 100% in our country. We are pleased that 2016 was a year of challenges and good economic, social and environmental performance, through responsible and profitable management in which we continuously applied criteria of ethics and well-being, with special emphasis on the growth of the communities where we operate. After the expansion of our infrastructure in 2013 and the consolidation of production in 50,000 annual tons of recycled food grade PET resin in 2014, positioning us as the largest food grade recycled PET plant in the world, endorsed by “PCI PET Packaging Resin and Recycling, Ltd.”, in 2015 and 2016 we were able to demonstrate our economic viability by exceeding our EBITDA, Earnings Before Interest, Taxes, Depreciation and Amortization goal, in comparison to our Annual Business Plan. We are proud that thanks to satisfactory management processes we were recognized as a Socially Responsible Company by the Mexican Center for Philanthropy (CEMEFI) and the Alliance for Entrepreneurial Social Responsibility (ALIARSE). Similarly, as friends and promotors of the Earth Charter, mentioned above, we are commited and encouraged, as this is one of the principal references for our business practices because by submission to the essence of the document we declare our participation in the concert of the great community of life; the Sustainable Development Goals (SDG of the United Nations) and our adherence to the Global Compact, international initiative to which we reconfirm our solidarity and continuous and effective support. Through the implementation of our PetStar Sustainable Business Model we confirm our vocation to operate with full sustainably, as well as our conviction to achieve a more efficient Circular Economy –to lengthen the useful life of natural resources with recycling– since this practice is preeminent in the design of our policies of social responsibility and goes hand in hand with the Inclusive Recycling that dignifies and formalizes the work of scavengers, natural associates from whom we constantly learn in a virtual circle where we all win, especially, the planet and those who will inhabit it in the future. On another note, we share values and actions, such as providing decent work, combating inequality, mitigating environmental deterioration, and contributing to sustainable development. In short, we are interested in taking part dynamically in the changes necessary for this world damaged by the voracity of those who don’t believe in shared responsibility and collaborating to fulfill the 2030 agenda. So we celebrate the shareholders and all of our collaborators for the support and commitment they offered to make possible the achievements we share here. Thank you for being a part of a change in thinking that we feel is the only possible route to the territory we want to reach in the coming generations. Welcome to this report that expresses the best of a group of people: their desire to make history and demonstrate that we can build a luminous reality.

About this report This report is for operations in 2016 and presents the results of the company’s social, environmental and economic performance. It was produced under the Global Reporting Initiative’s (GRI-G4) guide for preparing sustainability accounts in harmony with the Earth Charter, the Sustainable Development Goals (SDG) and the Principles of the Global Compact, all references that permit us to be in the vanguard and be part of an articulate, expert consensus on the subject of social responsibility. The document in your hands was audited by an independent third party and had expert guidance from Promotora ACCSE, S.A. in the preparation and design process. To define the content, an analysis of materiality was carried out in direct consultation with collaborators, clients and suppliers.

In gratitude,

Jaime Cámara Creixell, CEO of PetStar

MAKING PET CONTAINER SUSTAINABLE

G4-1, G4-2

I, II, III, IV

1, 8, 11, 12, 16, 17

G4-3, G4-18, G4-22, G4-23, G4-26, G4-28, G4-29, G4-30, G4-31, G4-32, G4-48

GRI

THE EARTH CHARTER

SDG

THE GLOBAL COMPACT

GRI

The contents, text and design were approved by the Communication and Sustainability Committee led by the company’s general director. We hope it will be useful to you and to those who wish to investigate further in the equivalences of this information with the parameters found in G4; SDG; the Earth Charter or the Principles of the Global Compact. In each section there is a simple guide aligning the contents directly with those frames of reference. There is also an appendix in which we share those documents and other data of interest or are complementary.

2016 SUSTAINABILITY REPORT PETSTAR

G4-18, G4-19, G4-20, G4-21, G4-24, G4-25, G4-26, G4-27

GRI

Materiality PetStar’s materiality analysis was based on:

◉◉ Direct consultation through an online survey to learn the perception on the performance of PetStar’s social responsibility in the following interest groups:

DIRECT CONSULTATIONS

Collaborators

UNIVERSE

292

◉◉ Indirect consultations in secondary sources, classified in the following interest groups:

Collector and scavenger associates

Suppliers

531

The general themes detected about the sector and PetStar’s impact were the following:

• The notable topics by topic and subtopic in open questions are as follows:

▶▶ Commitment to the preservation and sustainability of the environment to benefit future generations

▶▶ Environment: “Generated waste”, “GHG emissions” and “Water protection”

▶▶ Providing clients with a resin, in quality and volume, that allows them to be among the bottlers with the greatest percentage of recycled content in their PET containers

▶▶ Management and quality of life in the company: “Relations and communication between workers and the leadership”, “Diversity and equality in job opportunities” and “Equal remuneration for men and women”, “Mechanisms for demands in labor practices”

▶▶ A team driven by excellent leaders who understand and live the organizational values in each of their actions ▶▶ Client satisfaction and quality in the product

▶▶

Sector

▶▶

ONG

▶▶ Offering collaborators, suppliers, visitors and contractors a clean and safe environment

▶▶

Chambers and/or

▶▶ Satisfying the financial expectations of shareholders and providing a profitable alternative for the growth and expansion of the PET container

associations

286

FINDINGS BY SUBTOPICS

▶▶ Human talent and efficient state-of-the-art technology resources that are a competitive advantage

▶▶

Clients

Results

Public opinion

▶▶ Making suppliers highly trustworthy, long-range associates, and exercising a strong social impact by offering certainty to the country’s scavenger and collector sectors ▶▶ Consistently making an effort to be a reference of excellence through the constant innovations the companies carries out ▶▶ Promoting the environmental culture in shared responsibility with industry, the authorities and society in general.

Museum visitors

MAKING PET CONTAINER SUSTAINABLE

106

▶▶ Suppliers: “Investment and hiring policies” and “Non-discrimination” ▶▶ Clients: “Loyal competency practices and “Fair Price” ▶▶ RSE actions: “Non-discrimination and empowerment of vulnerable groups through development programs”, “Social impact programs (reduction of poverty, education for young children, etc.)”, “fight against child labor and forced labor”. • Of the people who responded to the surveys on materiality, 80% would like to know more about the international initiatives for sustainability to which PetStar adheres. • 100% of the participating universe considers the existence of PetStar valuable.

2016 SUSTAINABILITY REPORT PETSTAR

5.0

GRAPH OF MATERIALITY

PetStar and Sustainability

4.5

IMPORTANCE FOR SHAREHOLDERS

4.0

4.5

3.5

Appreciation of our home, that is to say, of this land. Maturity, the vanguard, inclusion and capacity for change to generate new forms of social interaction; that is, to carry out an enterprise with another, who also receives a benefit, who complements us. That moves us and defines us. That is why PetStar is the largest food grade PET recycler in the world, and today it is the responsibility of leading firms to work and extend bridges so that everyone can travel to more just times in which the essential thing is to all be connected and grow.

3.0 2.5 2.0 1.5

4.0 1.0

3.0

3.5

4.0

0.0 0.0

0.5

1.0

1.5

2.0

3.0

2.5

IMPORTANCE FOR PETSTAR

3.5

4.0

4.5

Importance

Performance

1. Clean, safe and healthy for collaborators, suppliers, visitors an contractors

4.5

4.2

2. Honesty, impeccable management of company resources, information, personnel management and the rejection of any corrupt practice

4.5

4.2

3. Commitment to the preservation and sustainability of the environment to benefit future generations

4.5

4.2

4. Human talent and efficient technology resources at the vanguard, constituting a competitive advantage

4.4

4.2v

5. Promotion of the environmental culture in shared responsibility with industry, the authorities and the general public

4.4

4.2

6. Consistent effort to be a reference of excellence for the constant innovation carried out by the company

4.4

4.2

7. Client satisfaction and product quality

4.4

4.2

8. Respect, acceptance of opinions and the way other people are without prejudice or discrimination

4.4

4.2

9. Making suppliers highly trustworthy, long-term strategic associates and exercising a strong social impact by offering certainty to the scavenger and collector sector of the country

4.5

4.1

10. A team of excellent leaders who understand and live the organizational values in each of their actions

4.5

4.1

11. Satisfying the financial expectations of shareholders and a profitable alternative for growth and expansion for the sustainability of PET containers

4.5

4.1

MAKING PET CONTAINER SUSTAINABLE

Operating from this perspective has converted us into the largest bottleto-bottle recycling plant in Mexico. We are constituted as a mercantile society under the regulations as a variable-capital private equity firm. As a recent example, at the close of each year we recycle 50,000 tons of PET in just our state of Mexico plant, with an area of 23,735 square meters, in which we generate 300 direct jobs. Moreover, we have eight collection plants strategically located across Mexico in the following cities: Guadalajara, Monterrey, San Luis Potosí, Querétaro, Ecatepec, Toluca, Acapulco and Mérida.

0.5

5.0

G4-7, G4-14, G4-EC2

I, II

6, 7, 11, 12, 13, 15

1, 2, 3, 4

GRI

THE EARTH CHARTER

SDG

THE GLOBAL COMPACT

2016 SUSTAINABILITY REPORT PETSTAR

There will be no turning back for us in our mission because we are concerned about addressing some of the factors causing climate change with the inclusive recycling and circular economy model –concepts that will be detailed below– for, according to the World Bank, Mexico is one of the countries most vulnerable to climate change: 15% of the territory, 68% of the population and 71% of the economy are exposed to the consequences of this global problem.

We are a sustainable project that uses vanguard technology, with the capacity to collect 80,000 tons of PET annually, of which 65,000 tons (about 3,100 million bottles) are processed and transformed into 50,000 tons of food grade PET recycled resin for the production of new bottles. So, we use a fraction of the energy needed for this process in comparison to the energy required to produce virgin resin.

Our generation is aware of the urgency of designing businesses that do not damage the environment that sustains it. We operate under the philosophy of corporate sustainability, that is met when we administer our entire collection structure through an inclusive recycling model with which we promote the recognition and dignification of scavenging –a word that in Spanish comes from Nahuatl and means “looking for serviceable objects in trash centers”–.

At PetStar, led by Arca Continental, Coca-Cola de México, Bepensa Bebidas, Corporación del Fuerte, Corporación Rica, Grupo Embotellador NAYAR and Embotelladora de Colima, we are a mirror of the kind of companies needed now: companies that contribute to creating a Green Economy at the global level. México

MAKING PET CONTAINER SUSTAINABLE

How did we achieve this kind of interaction? We offered certainty in payments to the scavenger by bringing them closer to the formal economy, by setting up a company which they feel a part of. A company that empowers them, recognizes and appreciates their work because in the supply chain we avoid intermediaries who add no authentic value to the process or don’t share with us the essential aspects of sustainability: social, environmental and economic. In this spirit we’ve developed a model of community collection centers in such a way that a productive complementary project for rural, indigenous, marginal or urban populations can be created. Yes, we proceed with a logic that designs business models that move us away from practices aggressive with the environment and its inhabitants. This is the case in the Alliance with the Proyecto Sierra Gorda association in Querétaro, a reality supporting the conservation of this important natural reserve. Similarly, we work in coordination with the Tláloc Foundation in various sustainability projects. One example of this collaboration is the Holistic Training Center in the

indigenous Otomi community of San Mateo Capulhuac, in the state of Mexico, which has a sewing center, one for handicrafts, another with computers and soon the equipping of a multi-purpose hall. In this community a local collection center has been set up so that people can complement their income by collecting PET, material gathered in situ via our collection structure. Thanks to the work of our people, the principal engine and heart of PetStar, we were able to extend the benefits of recycling to the scavengers’ children with models like the Community Childhood Development Center (CEDIC) in Chimalhuacán, in the state de Mexico, a project we developed together with Dibujando un Mañana Foundation, an organization that coordinated the efforts of different organizations, such as Un Mañana para la Comunidad, the Comedor Santa María, and HOPE, to offer integrated education, food and medical services. Thus, in 2016, 250 boys and girls were taken care of daily, and our objective is to replicate this model in other regions where we have a presence and where it is indispensable to operate these practices of obvious social value. In addition, at PetStar we have created the Social Investment Fund, a product of the sale of the waste generated by our own processes. This fund supports different social causes bringing in all the interest groups and base population of the recycling chain, as they are the ones we owe for a large part of what is collected in Mexico. Our contribution is more than 1% of profits before taxes, responding to the call from the CEMEFI and making us one of the 77 founding companies that assumed this commitment in our country in 2015.

It is important to emphasize that in October 2014 PetStar incorporated its philosophy of corporate sustainability into the Earth Charter, a declaration of fundamental principles for the construction of a more just, sustainable and peaceful global society in the 21st century. The transcendence of this initiative lies in the fact that it is the product of intercultural conversations on the world scene on common goals and shared values: it is a reliable, consensual compass, map, or route to respect the soil that sustains us. As we’ve mentioned, PetStar’s human talent is its main strength: each person is a wealth of enormous experience, and, as a result, we are developing an internal volunteer program so that those who take part can contribute with their personal background and job skills actively and powerfully. Examples of this include the World Recycling Day, The International Tree Day, and the World Day without Cars, as well as celebrations of popular traditions like the Christmas party for children who use the Santa Maria dining room of the CEDIC. We are happy to report that all these actives have contributed to our receiving the ESR Distinction in 2015 from AliaRSE and the CEMEFI, and we will continue to work to receive it year by year.

And just as we take care of our own house, it is important to note that we are attentive to the international agreements on sustainability assumed by the member countries of the United Nations. Consequently, in November 2015 we celebrated the worldwide presentation of the 17 Sustainable Development Goals, a new global objective towards sustainability for 2030; PetStar takes on these challenges to play an active role in the necessary change. So we have committed to making a positive impact on reaching these objectives locally and regionally, as well as inspiring other companies, governments, societal organizations and people to do the same; the obligatory, solidarity and what should flow naturally in us to lift up this world coopted by disinformation and unequal opportunities. Congruently, with the actions we have shared until now, we can’t fail to mention that we have also negotiated our unconditional presence in the Global Compact, an important global network we will become a part of in January 2016, to collaborate in the promotion of sustainable management in companies. Finally, since 2013 we have received confirmation that PetStar “is the largest food grade PET recycling plant in the world” from the prestigious British publication and firm PCI (PET Packaging Resin & Recycling Limited). This European organization is the international reference for information about PET recycling. Of course, all these actions, projections and desires open a door for us that couldn’t be better: the world trusts us and, of course, we trust it.

Social Value

Environmental Value

Economic Value

Through social responsibility schemes and alliances with other institutions, we dignify the work of scavengers and collectors in the country with a fair, stable income and by offering training and inclusion initiatives.

Besides removing containers from the surroundings, PetStar collaborates in the generation of a cleaner environment. In the process of reconverting containers into food grade PET we reduce by 78% the emission of greenhouse gases. As of 2016, with the implementation of a wind and co-generation project, the reduction reached 87%, which is equivalent to stopping all automobile circulation in Mexico City for two days.

Our operation produces value in the supply chain of Mexican Coca-Cola bottlers and contributes to container with recycling. We have eight collections plants; a valorization plant; another one for recycling, and multiple collector associates at the national level. We provide employment for 1000 people and, indirectly, benefit over 24,000 scavengers and waste collectors in the country.

MAKING PET CONTAINER SUSTAINABLE

HR-1, HR-3, HR-4, HR-5, HR-6, HR-9, HR-11

GRI

I,III, IV

1, 2, 3, 5, 8, 10, 11, 17

1, 2

THE EARTH CHARTER

SDG

THE GLOBAL COMPACT

2016 SUSTAINABILITY REPORT PETSTAR

Inclusive Recycling “There is enough in the world for human necessities but not for the greed in people”. Mahatma Gandhi According to the Avina Foundation, linked for over 20 years to collaboration programs for sustainable development in Latin America and the Caribbean, it is estimated that in our region 4,000,000 people make a living by recovering and commercializing recyclable materials like paper, cardboard, plastic and metal. In this context, in 2011 the Regional Initiative for Recycling (RIR) composed of the Multilateral Investment Fund and the Inter-American Development Bank’s Division of Water and Sanitation, Coca-Cola Latin America, the Avina Foundation, the Latin American Recyclers Network and PepsiCo Latin America arose. The RIR sees the light with the objective of improving recyclers’ access to the formal recycling market in Latin America and the Caribbean by designing and implementing activities that allow for:

▶▶ Improving the socio-economic situation of base recyclers. ▶▶ Facilitating their access to the formal recycling market. ▶▶ Promoting the development of public policies of integral solid waste management with the inclusion of recyclers. With these actions, the RIR seeks to make the work done by recyclers recognized and valued through a platform of strategic multi-sectorial alliances that serve as a space for dialogue and action, increasing the capacity for coordination at the national and regional levels between government, the business sector and recycling organizations. At PetStar we take on this vision with a component of inclusion for vulnerable groups not only at the base of our chain, but also by creating opportunities for young people, indigenous populations, women, the elderly, the handicapped and, of course, for children who will change the state of things with a look to a convenient future.

We look to improve the condition of scavengers by giving them a formal role in the supply chain. Dignification and Recognition.

2016 SUSTAINABILITY REPORT PETSTAR

History ▶▶

1995

Our history is an example of transformations in the direction our country and planet need and that is our turn to care for. This adventure began in 1995 with the appearance of Avangard Mexico, a company dedicated to the collection and commercialization of post-consumption plastic waste, which in a short time became the principal collector of this type of material in Latin America, as we started recovering approximately 100,000 tons of material a year. So, a philosophy began and we can share significant moments that today conform and define us.

▶▶

2009

In 2009 the construction of PetStar’s first phase concluded, with the capacity to recycle 28,000 post-consumption bottles annually to convert them into 22,000 tons of food-grade, high-quality recycled resin annually. In 2009 the plant was inaugurated, with Enrique Peña Nieto present in his capacity as governor of the state of Mexico.

▶▶

2013

By the end of 2013 the expansion of the plant, together with the PetStar MuseumAuditorium, was finalized with a capacity to recycle 65,000 tons of post-consumption bottles and convert them into 50,000 tons of food grade recycled resin annually to be consumed by our shareholders, which made us the largest food grade PET recycling plant in the world, a fact validated by the prestigious British firm, PCI (PET Packaging Resin & Recycling Limited).

MAKING PET CONTAINER SUSTAINABLE

▶▶

2001

In 2001 we actively participated in the design and operational execution of ECOCE (non-profit civil association sponsored by the food and beverage industry to promote an ecological culture and the collection and recycling of packaging and containers. In 2002, Avangard Mexico became the operating arm of ECOCE with 14 collection plants at the national level.

▶▶

2011

At the end of 2011 PetStar’s shareholder participation was acquired largely by the Coca-Cola Bottling System, the second largest Coca-Cola bottler in Latin America. This is the birth of the commitment to expand the plant with the construction of a second phase.

▶▶

2014

In June 2014 a ceremony was held to inaugurate the museum-auditorium with the participation by Enrique Peña Nieto in his role as president of Mexico. In that same year, Mexico was recognized as the only county to reach the goal of achieving a recycled content of over 25% in PET containers, according to Coca-Cola’s global Sustainability Report.

▶▶

2006

In 2006, through an association between Avangard México and Promotora Ambiental (PASA), PetStar was established, with Avangard Mexico remaining as a subsidiary.

▶▶

2012

In mid-2012 the first stone was placed in the expansion of our plant with participation by Eruviel Ávila Villegas, governor of the state of Mexico. By the end of 2013. By the end of 2013 the expansion of the plant, together with the PetStar Museum-Auditorium, was finalized with a capacity to recycle 65,000 tons of post-consumption bottles and convert them into 50,000 tons of food grade recycled resin annually to be consumed by our shareholders, which made us the largest food grade PET recycling plant in the world, a fact validated by the prestigious British firm, PCI (PET Packaging Resin & Recycling Limited). governor of the state of Mexico.

▶▶

2015

In 2015, bottlers in the Coca-Cola system, PetStar shareholders, were able to incorporate into their containers the equivalent of 35% of recycled resin, a percentage superior to the 25% percent goal set by the Coca-Cola Company for that year.

G4-34, G4-35, G4-36, G4-37, G4-38, G4-39, G4-40, G4-41, G4-45, G4-46, G4-47, G4-48, G4-49, G4-51, G4-LA12

III, IV

8, 10, 12, 16, 17

2, 4

GRI

THE EARTH CHARTER

SDG

THE GLOBAL COMPACT

2016 SUSTAINABILITY REPORT PETSTAR

Corporate Governance Organizational structure

Shareholders Map PetStar Board of Administration

Technical Committee

Auditing and Company Practices Committee

Communication and Sustainability Committee

At PetStar we are proud to be the product of the synergy of the efforts of various bottlers in the Coca-Cola Mexico System. Arca Continental has 49.90% of the stock, Coca-Cola México has 30.00%, Bepensa Bebidas has 10.06%, Corporación del Fuerte has 5.04%, Corporación Rica has 2.20%, Grupo Embotellador Nayar has 1.84% and Embotelladora de Colima has 0.96%.

SHAREHOLDERS PARTICIPATION INPETSTAR

CEO

Jaime Cámara Creixell

49.90% 5.04% Associate CEO

10.06%

Ramón Maraboto Manzo

Recycling Operations Director

Administration and Finance Director

Human Capital and Legal Director

Collection Operations Director

Bernardo Salazar Salazar

Rocío Salgado López

Alfredo Arzaluz Beltrán

Jaime Gómez Rivera

MAKING PET CONTAINER SUSTAINABLE

1.84%

30.00%

0.96% 2.20%

2016 SUSTAINABILITY REPORT PETSTAR

Board of Directors “If you violate the laws of nature, you are your own accusing attorney, judge, jury and hangman”. Luther Burbank

MAKING PET CONTAINER SUSTAINABLE

2016 SUSTAINABILITY REPORT PETSTAR

Board of Directors Our strong desire is to rely on the best individuals to drive the core of PetStar. Consequently, our board of directors is the maximum management organism and is composed of ten members aligned to that philosophy that denotes us, each one of them as a deputy. These board members must be shareholders, partners, employers or functionaries of a shareholder, with the result that there are no independent shareholders nor do they receive any remuneration. The president of the board of directors does not occupy an executive position in the company.

Thus, we have three types of shareholders with the right to be named board members: I. Coca-Cola México has the right to have three members on the board. II. Arca Continental has right to have four members on the board and to name the board’s president. III. Bepensa Bebidas, Corporación del Fuerte, Corporación Rica, Grupo Embotellador Nayar and Embotelladora de Colima, may have three members on the board. The Auditing and Company Practices Committee has six members and adjuncts, two being designated for each of the different types of shareholders; the president of this committee is named by all of them. The Technical Committee is composed of four members and the director general. The four members are designated as follows: Coca-Cola México, one; Arca Continental, two; and the final member is designated by the remaining shareholders. In addition, the Communication and Social Responsibility Committee was approved, and is composed of four board members and the general director; designation of members is the same as for the Technical Committee. The Board of Directors is where compensation for upper management is determined, based on fulfillment of the previously authorized work plan. In the same manner, topics of communication are evaluated and the Sustainability Report is approved. The general director reports to the board of directors through a written monthly report and attends the trimestral board meetings at which economic, social and environmental impacts, risks and opportunities are analyzed.

“PetStar is a generator of innovative solutions that, thanks to leadingedge technology, transforms efficiently something that for many people is waste, converting it into a high added -value raw material. It’s an initiative that contributes to conserving the environment in benefit to present and future generations.” Alejandro Molina President, Board of Directors and Executive Technical Director, Arca Continental Supply Chain.

“PetStar’s principal value is that it surpasses the challenge of recycling in a completely integral manner, setting an international precedent that can make PET highly sustainable in a beginning and end cycle full of technical, economic, social and environmental virtues. For us it is a source of great pride and renews Arca Continental’s and the Mexican Coca-Cola industry’s commitment to the environment and the Mexican people”. Francisco Garza Egloff Member of the Board of Directors General Director, Arca Continental.

MAKING PET CONTAINER SUSTAINABLE

2016 SUSTAINABILITY REPORT PETSTAR

“In addition to the high quality of the recycled resin, PetStar makes Arca Continental and the rest of the shareholders proud for various reasons, but notably for the great positive impact it’s having on the community, particularly among the collectors. Its great team of people has built a model that is unique, solid, and difficult to match and economically profitable”. Eusebio Ang Sánchez Member of the Board of Directors Director of Supplies, Arca Continental.

“PetStar is a clear example of shared responsibility because it touches all the elements in society, such as family, business people, the authorities, and general public to improve our country. In addition to its positive repercussions on the environment, it dignifies the labor of collectors and improves the living conditions of one of the most afflicted social sectors”. Roxana Penagos Member of the Board of Directors and Vice President of Legal Affairs, Coca-Cola México.

MAKING PET CONTAINER SUSTAINABLE

“PetStar is the materialization of the fact that we can have a better world by reducing our impact on the planet. In addition, the Coca-Cola system is proud to have an excellent operation, a benchmark, in bottle to bottle recycling”. Luis Galguera Member of the Board of Directors and Technical Vice President, Coca-Cola Mexico.

“The work done by PetStar underscores the Coca-Cola industry in Mexico’s commitment to the environment and the community. Its value lies in constructing environmental and social credentials as the largest food grade PET recycling plant in the world, with front-running processes implemented by the Coca-Cola industry in Mexico”. Antonio Guillén Rivera Member of the Board of Directors and Director of Operations, Grupo RICA

2016 SUSTAINABILITY REPORT PETSTAR

“Through PetStar, our partners, we contribute to the social development of Mexico, support conservation of the environment and promote the growth of awareness of sustainability in the population. It is an example of the fact that in Mexico things can be done right because we have welltrained people capable of building and operating the largest food grade PET recycling plant in the world.” Francisco Brun González Member of the Board of Directors and Director of Operations, Embotelladora de Colima.

MAKING PET CONTAINER SUSTAINABLE

2016 SUSTAINABILITY REPORT PETSTAR G4-56

I, II, III, IV

1-17

1, 2, 3, 4

GRI

THE EARTH CHARTER

SDG

THE GLOBAL COMPACT

Philosophical framework “Don’t squander even the smallest thing created because grains of sand make mountains and atoms, the infinite.” E. Knight

MAKING PET CONTAINER SUSTAINABLE

30 Ethical conduct

2016 SUSTAINABILITY REPORT PETSTAR

G4-56, G4-57, G4-58, G4SO4

III, IV

1, 2, 4

GRI

THE EARTH CHARTER

SDG

THE GLOBAL COMPACT

“Business is also an art because in it there is a mix of ethics and esthetics. However, business without ethics is useless”. Alejandro Jodorowsky

BEHAVIOR WITH CLIENTS/CONSUMERS We are committed to attending and serving the market with products and services of the highest quality, satisfying the needs and expectations of our clients. Our dealings should always be honest and respectful, seeking development for both sides. We are committed to providing our personnel with safe, healthy working conditions and at the same time develop and improve their skills and capacity.

We who work at PetStar are representatives and ambassadors of our organization; we are an extension of its essence and principal values. Therefore, our behavior with those around us should be based on our company’s Code of Ethics.

SHAREHOLDERS We are committed to the best international practices for governance of the company and to fully meeting the legal and statutory dispositions that regulate it. We are committed to providing reliable significant information about our activities, operation and financial situation periodically. We are committed to caring for and increasing the value of our shareholder’s patrimony and protecting their assets. No employee should offer, give or receive a gift or payment that might be considered a bribe. Employees should reject any offer or request involving bribery and immediately inform the company’s management.

To guarantee ethical legal conduct, at PetStar we give an induction course to people entering the company, as well as the Workshop on Living the Values. Similarly, all personnel must sign the Employee Declaration Letter of Current or Potential Conflict of Interest. It should be mentioned that our normative fulfillment added to our ethical standards lead us to report that in 2016 no fines or significant sanctions were registered for non-compliance with laws or regulations. The Code of Ethics is a guide for our organizational values and indicates how we should act in different interactions with our publics. The articles of our Code of Ethics are the following: GENERAL BEHAVIOR We are committed to carrying out our activities with honesty, integrity and transparency, with regard to human rights and the legitimate interests of all persons and organization with which we have relations. PERSONAL BEHAVIOR We are committed to the philosophy of promoting and maintaining a creative work environment that develops and privileges trust, respect and fair treatment for our personnel, acting without discrimination for reasons of age, sex, nationality, and respecting political affiliation, beliefs, and religious traditions.

MAKING PET CONTAINER SUSTAINABLE

INDUSTRY The company considers competence in the market valuable for society as a whole and supports regulations that are fair and adequate. The company and its employees will follow a conduct respectful of the principles of free competition and the applicable laws. BUSINESS INTEGRITY The company is committed to not giving or receiving, directly or indirectly, bribery or other benefits to gain unfair financial, commercial or any other kind of advantage. SUPPLIERS The company is committed to developing mutually beneficial relations based on competitive quality and services with suppliers. Honest integral treatment is the base condition of the relationship. CONFLICT OF INTEREST The employees and direct family members should abstain from intervening in any negotiation with clients, suppliers or service providers where there might be a conflict of interest impeding the performance of their functions or obligations in an objective integral manner.

As a general rule our employees should not have related businesses and in the extreme case where this were so, they should make this known to the administration and abstain from direct involvement in these businesses. FULFILLMENT OF THE LAW The company and its employees should fulfill the laws and regulations applicable to the performance of duties. PRIVATE ACTIVITIES The company is committed to defending and promoting legitimate business interests and participating with the government and other institutions in the development of laws and regulations that respect legitimate interests. COMMUNICATION AND FULFILLMENT The company is committed to assuring that the principles specified in this Code of Ethics be communicated, understood and observed by all employees and functionaries. The company will facilitate the form and mode for reporting non-fulfillment of these principles so that whoever makes a report will not suffer consequences for doing so. The board of directors is committed to company administrators to avoid that they suffer any adverse effects in case of incurring losses or damages from adherence to the principles of this Code of Ethics.

COMMUNITY The company has the commitment to comply with environmental laws and regulations —and even to work to constantly improve the impact of its activities on the environment— and to develop the business on a sustainable base, as well as to participate with other organizations in the promotion of environmental protection, expand knowledge on environmental topics and communicate good practices in this area. As an integral part of society, the company is committed to behaving like a good citizen and fulfilling its social responsibility in the communities where it operates. We promote the reporting of any deviation from the Code of Ethics in the Transparency Letterbox, an email address where any complaint can be made confidentially. For this purpose there is an Evaluation and Follow Up Committee, composed of the following members: ▶▶ General Management ▶▶ Associate General Management ▶▶ Human Capital Management In 2016, 13 reports were received and investigated so as to take the appropriate measures in each case. The Transparency Letterbox address: buzondetransparencia@petstar.mx

32 Management Model

G4-12, G4-24, G4-25, G4-26

I, II, IV

1, 8, 9, 10, 11, 12, 13, 16, 17

GRI

THE EARTH CHARTER

SDG

2016 SUSTAINABILITY REPORT PETSTAR 3, 4

THE GLOBAL COMPACT

In the recycling process there are two basic elements:

100% of the raw material –the bottles we process– are collected with our collection infrastructure.

Collection Mechanisms

COLLECTION. Recovering recyclable materials from trash collection infrastructure, classifying it and leaving it in a suitable condition for recycling. In Mexico this process is labor intensive and has a high social component.

RECYCLING. Appraising that flow of materials with technology.

Collecting to be able to reincorporate into productive chains. This process is capital and technology intensive. These components, though very different, are indispensable for closing the VIRTUOUS RECYCLED CIRCLE.

MAKING PET CONTAINER SUSTAINABLE

DEPOT

Warehouse that buys recyclable materials where cardboard, metal, PET and others are concentrated.

LAND FILLS

Place where solid urban waste is delivered. It meets the environmental standard and can be administered by the city or a private company.

SEPARATION PLANT

Place where recyclables are recovered and separation of garbage, compost, etc. is carried out.

TRANSFER STATION

Area where waste is deposited and consolidated for subsequent transfer to a land fill. Separation is sometimes done by scavengers.

INDUSTRY

Generates post-industrial material and recyclable waste.

COLLECTION ASSOCIATE

Small establishment that collects recyclable materials, classifies them, processing them with equipment supplied by Avangard.

There were great challenges for us in 2016. We consolidated our collection strategy, permitting us to eliminate intermediaries, who in our case do not add value but do add cost, and allowing us to buy at a competitive price more beneficial for our associate collectors and their gatherers, and thus focus our efforts on providing excellent service in the punctual collection, payment and development of advice and training to our collection network beyond simply price and reorienting our collection model to favor the inclusion of our gatherers. We were also able to advance significantly in making our supply chain more efficient, achieving less waste and maximizing use of all the bottles web buy and the sub-products that this mixed lot generates. Jaime Gómez Rivera Collection Operations Director

HR-1, HR-3, HR-4, HR-5, HR-6, HR-9, HR-11

GRI

I,III, IV

1, 2, 3, 5, 8, 10, 11, 17

1, 2

THE EARTH CHARTER

SDG

THE GLOBAL COMPACT

2016 SUSTAINABILITY REPORT PETSTAR

Policy in favor of

Childhood Rights Dear Collector Partner,

at PetStar we respect and promote the rights of boys and girls and reject the exploitation of childhood labor in the recovery of PET containers. For that we want to thank you for sharing our values and observing in your daily work a strict commitment to childhood rights, a situation to which we devote time to verify fulfillment of the provisions on minimum age established by law and regulations, promoting the higher interests of childhood.

To know more:

PetStar is a company with values, committed to the principles of the UN Global

Compact, the Sustainable Development Goals, also of the United Nations, and to the Earth Charter, and we work at promoting the childhood rights contained in the Childhood Rights Convention approved in 1989, currently supported by 192 countries, including Mexico. www.petstar.mx

MAKING PET CONTAINER SUSTAINABLE

2016 SUSTAINABILITY REPORT PETSTAR

INCLUSIVE COLLECTION

Collection Processes 1 Collection of material

Selection of

4 materiales

3 Bunker Feeding

Landfill Picker

Urban Picker

Who sorts recyclables in landfills.

Who sorts recyclables in the streets.

5 Compacting

6 Evaluation of the end product

7 Storage

Colle Partncteor r

Transport Picker Who sorts recyclables in waste transports.

Who buys at the basic source and whom we must provide a service of excelence.

PHASE

Consumer Who sorts recyclables at home.

DESCRIPTION

1. COLLECTION OF MATERIAL

Different collection mechanisms with their own transport are attended.

2. EVALUATION INCOMING MATERIAL

The material arriving from our collection mechanisms are inspected and evaluated with identification systems.

3. SELECTION OF MATERIALES

Once the material is admitted and evaluated, it is separated by color and containers of other plastics.

4. COMPACTING

The material separated is compacted, generating bundles with the dimensions and density suitable for more efficient storage and transport to PetStar.

5. EVALUATION OF Later a meticulous inspection of the bundles is made to insure THE END PRODUCT that they are within the quality standard.

MAKING PET CONTAINER SUSTAINABLE

6. STORAGE

Once the product is approved, it is stored in lots for transfer to PetStar.

7. SHIPPING AND DELIVERY

The bundles are shipped to PetStar in platforms covered with canvas, in compliance with the Federal Transport Norms.

Evaluation incoming

2 material

8 Shiping and delivery

2016 SUSTAINABILITY REPORT PETSTAR

Recycling Processes PHASE

MAKING PET CONTAINER SUSTAINABLE

DESCRIPTION

1. RECEPTION OF BUNDLES OF PET BOTTLES

The raw material is unloaded from the platforms and entered into the raw material inventory.

2. STORAGE OF RAW MATERIAL

Raw material is controlled and protected.

3. FEEDING

The bundles are opened and fed into the process.

4. PREWASHING OF CONTAINERS

The container surfaces are washed to eliminate the greatest possible amount of contaminants.

5. DETECTION AND AUTOMATIC ELIMINATION OF CONTAMINANTS

The contaminants entering with the PET containers are detected and eliminated with automatic detectors.

6. MANUAL DETECTION AND ELIMINATION OF CONTAMINANTS

Contaminants eluding the automatic detection and elimination process are manually eliminated.

7. MILL

The containers are ground to convert them into PET flake in a controlled size.

8. WASHING

The flake is washed using special chemicals to remove glues and other impurities.

9. DRYING

The water is eliminated leaving the flake completely dry.

10. HOMOGENIZATION

The quality of the flake is homogenized by recirculation.

11. DETAILING

Excessive dust, colored flake and ferrous contaminants are eliminated from the PET flakes.

12. STORAGE OF THE FLAKES

The flake approved by quality assurance is stored and controlled.

13. EXTRUSION

The PET flake is melted, decontaminated in 85% and transformed into amorphous PET spaghetti. In the stage the PET’s molecular chains are broken up by the thermal effect of extrusion.

14. PELLETIZATION

The amorphous PET spaghetti is converted into pellets and chips with certain dimensions.

15. POLYCONDENSATION

The PET is 100% decontaminated and the amorphous PET’s molecular chains are reconstructed, controlling the intrinsic viscosity (IV).

16. COOLING

The recycled PET resin (pellets) is cooled and sent to the silos for finished products, after evaluation and approval by quality assurance.

17. PELLET STORAGE

The food grade PET recycled resin is stored and controlled.

18. EXTERNAL TRANSPORT, HOPPER CAR

The product is sent to the customer in bulk using outside hopper car transport.

19. LOADING IN LARGE BAGS

By special request from the customer, the product is sent in large bags of a defined size.

20. OUTSIDE DRY BOX TRANSPORT

The product is sent to the customer, using outside dry box transport.

2016 SUSTAINABILITY REPORT PETSTAR

4 Prewashing of containers 1 Reception of bundles of PET bottles

Detection and automatic

Storage of 2 raw material

5 elimination of contaminants 3 Feeding

1O Homogenization

Storage of 12 the flakes

7 Mill 9 Drying

Manual detection and

6 elimination of contaminants 11 Detailing

8 Washing

15 Polycondensation

13 Extrusion

14 Pelletization 16 Cooling

17 Pellet storage

18 External transport, Hopper Car

Loading in 19 large bags

2O External transport, Dry Box

One of the most significant results in the recycling field is that we have managed to transform 65,000 tons of PET to produce 50,000 tons of food grade recycled PET resin. Bernardo Salazar Salazar Recycling Operations Director

MAKING PET CONTAINER SUSTAINABLE

2016 SUSTAINABILITY REPORT PETSTAR

Market Customers PROCESS PHASE

ACTIVITY IN EACH PHASE OF THE PROCESS

1.Recepction of recycled PET resin (RPR)

The recycled PET resin is received in the facilities of customers producing preforms or containers.

2. Mixture of RPR with virgin resin

A predefined quantity of recycled PET resin is mixed with virgin resin.

3. Drying of the mixture of the material

The mixture of material is dried.

4. Preform injection

Preforms are produced with the injection method.

5. Blowing preforms

Preforms are converted into PET containers with the blowing method.

6. Labeling

The containers are labeled.

7. Filling

The PET containers are filled.

8. Product storage

The beverages in PET containers are stored.

9. Loading for delivery

The product is loaded onto delivery trucks.

10. Distribution

The beverages in PET containers are delivered to stores and super markets.

11. Consumption

The end customer enjoys the beverage.

Our waste is handled in complete compliance with the corresponding norms. In 2016 the amount of waste increased in comparison to 2015, owing mainly to the increase in flake production.

MAKING PET CONTAINER SUSTAINABLE

2016 SUSTAINABILITY REPORT PETSTAR

G4-4, G4-6, G4-8

III

8,9

2, 3

G4-15, G4-16

I, II, III, IV

1-17

1, 2, 3, 4

GRI

THE EARTH CHARTER

SDG

THE GLOBAL COMPACT

GRI

THE CARTA EARTH DE LA CHARTER TIERRA

SDO SDG

THE PACTO GLOBAL MUNDIAL COMPACT

“We abuse the earth because we consider it ours. When we see it as a community to which we belong, we will begin to use it with greater affection and respect” Aldo Leopold

Coverage

COLLECTION PROCESSES

Associations to which we belong “At the end of day we don’t remember our enemies’ words but rather the silence of our allies, our friends...” Martin Luther King JR.

A socially responsible Company could not have selfunderstanding or develop without the presence of a series of actors and friends whom we join to achieve the coexistence we seek. So we offer you a list of the allies with whom we share and connect our objectives.

ANIPAC, as members of the Executive Commission.

RECYCLING PROCESSES MARKET CUSTOMERS

APR (Plastic Recyclers Association), as Board members.

CANACINTRA, as members.

ECOCE A.C., where we participate as member of the Recycling Committee. We are proud to demonstrate that thanks to our eight plants, PetStar has a PET collection structure at the national level: recycling is carried out in Toluca, state of Mexico, and the product distributed in the entire country. The sectors we service are bottlers in the Coca-Cola industry in Mexico and we offer a total of ten by-products to other national and foreign recyclers. We have seven customers under contract for the recycled resin and 20 for our by-products, depending on availability.

MAKING PET CONTAINER SUSTAINABLE

NAPCOR (National Association for PET Container Resources), members.

2016 SUSTAINABILITY REPORT PETSTAR

PetStar’s Adherence to the Earth Charter “We do not inherit the land from our ancestors; it is loaned to us by our children.” Native american proverb

Economic Performance

We shouldn’t forget what sustains us: the planet that brings us together and offers us natural resources to create societies, communities, and countries, and prosperity. But what do we give back to the soil, the air, the water that sustains us? Considering the Earth as our home, in 2014 we signed an agreement to adhere to the Earth Charter, as it is the maximum initiative, arising from the international civic society and is the result of a dialogue that lasted a decade among representatives of different people and nations, as well as all the sectors of society, to constitute a document that would contain principles and values oriented towards the conservation of a new global society that would transition to sustainability. With this coalition, we formalize our commitment to contribute to global sustainability, acting locally and regionally as well as sharing this message with our interest groups, including the people who visit the PetStar Museum-Auditorium. Thus, we take on measures focused on the following principles and ways leading us to:

▶▶ Maintain at all times a conduct of ecological integrity. ▶▶ Keep the place where we live clean. ▶▶ Respect the lives of people, animals, and plants because all living beings have rights.

▶▶ Refrain from removing flora and fauna from the places we inhabit.

▶▶ Know and value the place where we reside. ▶▶ Live in a democracy, without violence and in peace. ▶▶ Collaborate so that everyone has what he/she needs to

live with dignity (education, health, rest and recreation). ▶▶ Take care of our surroundings. ▶▶ Recognize the need for everyone to understand and help. ▶▶ As human beings not make war or manufacture arms.

▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶

Strive for peace in the entire world. Have social and economic justice. Obtain a life of peace throughout the world. Collaborate in erasing poverty for everyone. The same rights for men and women. Recognize that all children should have a school. Have only what we need and learn to share what we have. Respect and care for life. Know, treat well and respect people, animals and plants. Help others and share what we have. Make it possible for more people to enjoy the good, beautiful things that surround us.

In 2016, we trained 1,000 collaborators in the Earth Charter

“If you really believe the environment is less important than the economy, try holding your breath while you count your money” Dr. Guy McPherson

It is gratifying to achieve good economic performance that derives from responsible practices. To cite some important data, in 2015 we were able to surpass by 24% the financial objective stated in the Business Plan and in 2016 we surpassed it by 29%, but not just that. We also surpassed the results of the previous year by 69%. In addition, for the second year in a row our internal financial closure did not have any variation against the audited financial report emitted by EY. In addition, in both years we obtained the audited signed financial report on February 10 for presentation to the board; those accomplishments are the result of the planning and coordination of many activities throughout the year and give certainty to both the office of the general director and to shareholders, who were satisfied, recognizing that these are important, complex achievements. In 2016 we were also able to reduce the level of short-term debt by 75%, to completely liquidate it in January 2017, with the result that today we are in a very healthy financial state. Rocío Salgado López Administration and Finance Director

MAKING PET CONTAINER SUSTAINABLE

G4-9, G4-17, G4-EC1

I, III

1, 3, 5, 8, 10, 11, 12

2, 4

G4-9, G4-10, G4-11, G4EC3, G4-EC5, G4-LA1

GRI

THE EARTH CHARTER

SDG

THE GLOBAL COMPACT

GRI

2016 SUSTAINABILITY REPORT PETSTAR

I, III

1, 3, 5, 8, 10, 11, 16, 17

1, 2

THE EARTH CHARTER

SDG

THE GLOBAL COMPACT

Human Capital

Consolidated Statement

In 2016 we received “Top Rewards”, given by the Top Companies consulting firm for the “Commitment to Strengthen Our Organizational Culture”, having advanced three places in one year in the Super Companies ranking from 44 in 2015 to 41 in 2016, which signifies outstanding performance, as the average for annual company evolution is one place. Advancing three places in one year means we implemented extraordinary activities with our personnel.

Consolidated Statement Recycled resin (Tons)

2015

2016

50,123

50,044

Sales

1,142 mdp

100%

1,218.8 mdp

100%

Cost and expenses

1,030.7 mdp

90.2%

1,029.2 mdp

84.4%

Depreciation

108.5 mdp

9.5%

99.2 mdp

8.1%

Operating income

3.5 mdp

0.3%

90.4 mdp

7.4%

EBITDA

111.9 mdp

9.8%

189.6 mdp

15.6%

In 2016 our staff was composed of 963 collaborators, of whom 31% were women and 69%, men. 2016 TOTAL

Women 302

Men 31%

661

Total staff 69%

963

mdp = million pesos

ADMINISTRATIVE

EBITDA

67.2 mdp

5.6%

2014 mdp = million pesos

111.9 mdp

9.8%

2015

189.6 mdp

15.6%

2016

POSITIONS

Women

Men

134

OPERATIVE POSITIONS

Women

Men

210

529

We are part of the Super Companies ranking published by the magazine Expansión and organized by the firm, Top Companies, and were ranked number 41 out of a total of 56 companies with 501 to 3000 employees. Alfredo Arzaluz Beltrán Human Capital and Legal Director

MAKING PET CONTAINER SUSTAINABLE

G4-LA2, G4-LA8

I, III

1, 3, 5, 8, 10, 11, 16, 17

1, 2

GRI

THE EARTH CHARTER

SDG

THE GLOBAL COMPACT

Labor contracts Based on PetStar’s policies, benefits are approved for full-time and casual employees. Personnel hiring adheres to the features established by the Department of Labor and Social Welfare. PERSONNEL BY EDUCATIONAL LEVEL Elementary

10.38%

Secondary

41.50%

High School

25.24%

College

16.04%

Specialization courses/programs

2.36%

Master’s

1.18%

Ph. D.

0.00%

Other

3.30% 100.00%

PERSONNEL BY REGION

AGE RANGE

Recycling Plant, Toluca

31.01%

18 to 22 years old

7.19%

Collection Plant, Ecatepec

14.04%

23 to 29 years old

32.42%

By-products Valorization Plant, Toluca

8.61%

30 to 35 years old

26.42%

Collection Plant, Acapulco

6.72%

36 to 40 years old

17.22%

Collection Plant, Querétaro

6.13%

41 to 50 years old

12.15%

Collection Plant, Mérida

6.01%

51 to 60 years old

4.36%

Collection Plant, San Luis Potosí

5.90%

61 years old and over

0.24%

Collection Plant, Guadalajara

5.78%

Main Office, Mexico City

5.42%

Collection Plant, Monterrey

5.19%

Collection Plant, Toluca

5.19% 100.00%

It should be mentioned that in 2016 we had a total of 114 lateral changes or promotions that were a part of our program of development and growth for the personnel, in which preference is given to internal applications over external hiring, thus promoting upward movement in the organization.

NUMBER OF PROMOTIONS 2015 84 2016 114

100.00%

2016 SUSTAINABILITY REPORT PETSTAR

Services and benefits “By far, the best reward life offers is the opportunity to work in something that is worthwhile.” Theodore Roosevelt As we have expressed here, our families’ welfare is a requirement for a genuine exercise of social responsibility. Consequently, every year we conduct a salary review with representation from the personnel. As an example, in 2016 an agreement was made for a 4.20% raise over the previous year. PetStar’s services are superior to those specified by law for congruity with the economic environment.

Training and development In 2016 we held 130 training courses investing a little over $1,159,500, compared to 2015 an increase in our investment of 9%. PERSONNEL

COURSES

PEOPLE (IMPACTS)

HRS/MAN

INVESTMENT

2015

Administrative Operative

2016

Administrative Operative

14 111 125 51 79 130

170 716 886 141 884 1,025

2,380 79,476 81,856 15,199 93,173 108,372

$115,500 $943,500 $1,059,000 $140,367 $1,019,138 $1,159,506

A total of 108,372 man hours of training, with an average of 107 hours per employee.

MAKING PET CONTAINER SUSTAINABLE

AVERAGE TRAINING HRS

58 hrs/pp 58 hrs/pp 107.8 hrs/pp 105.4 hrs/pp

G4-LA9, G4-LA10, G4-LA11

GRI

I, III

1, 3, 5, 8, 10, 16, 17

THE EARTH CHARTER

SDG

1, 2

G4-LA5, G4-LA6

THE GLOBAL COMPACT

GRI

In 2016 we also inaugurated the Organizational Culture and Learning Program called PetStar Passport in which we took 900 collaborators (101 airplane tickets and 165 accumulated hours of land travel) to see the PetStar Museum-Auditorium and the largest food grade PET recycling plant in the world, as well as the Integral Community Development Center. This program focuses on having the personnel get to know and better understand how different areas and processes function, and on identifying the impact and transcendence of their daily work to develop a deep sense of belonging. The great majority of the personnel said that after this experience their personal commitment to the company is “to do their job with responsibility, quality and a totally positive attitude and to work as a team.”

“What I liked about this visit was spending time with all my co-workers during the flight and getting to know the process of converting PET into a pellet and seeing the Museum- Auditorium”.

I, III

1, 3, 5, 8, 10, 11, 16, 17

1, 2

THE EARTH CHARTER

SDG

THE GLOBAL COMPACT

Well-being, health, safety and quality of life Quality of life, well-being and the health of our collaborators are definitive aspects of PetStar’s work environment. We developed a platform of well-being for our personnel we call PetStar Bien that means PetStar Well. We enrolled 30 of our collaborators in this platform to participate in an inter-company competition called Mega Challenge Get Active Now that consisted of accumulating points and steps to obtain prizes and represent the company. In all, we accumulated 19,316,626 steps equivalent to 2,454 hours of physical activity, a 12,951 kilometers run and 694,598 calories burned.

Colaborator Collection Plant Mérida ADVANCED SAFETY SYSTEM This is a permanent program that renews activities for organizational learning every year, aimed at all the company’s personnel.

Support program for interns “The best moment to plant a tree was 20 years ago. . . The second best moment is now.” Chinese proverb

We believe it is impossible to move forward if we don’t systematically and congruently add those people who will succeed us in our work. In other words, the owners of tomorrow. That’s why –and with the objective of supporting technical or college students in the development of their skills through inclusion in our business processes– at PetStar we admit, train and encourage the professional internships of young people from different educational institutions. During 2016 we invested 479,000 pesos in the offer of economic support and services required by law to 22 young talents who took part in this new business vision. With pleasure we share with you the allies that educated these invaluable collaborators:

◉◉ ◉◉ ◉◉ ◉◉ ◉◉

Anáhuac University Autonomous University of the State of Mexico Toluca Regional Technology School Ixtlahuaca University Center Valle de México University

MAKING PET CONTAINER SUSTAINABLE

The SAS is the instrument which describes the processes and annual security, safety and environment program, fulfilling current normativity and internal security policy. With the safety policy, PetStar is committed to implementing actions aimed at creating a safe, healthy environment for its workers, as well as for visitors, suppliers and contractors, based on procedures and instructions that meet the normativity applicable in safety and healthy working

2016 SUSTAINABILITY REPORT PETSTAR

“One part will never be well unless the whole is well.” Platón

conditions, and with periodic training and the evaluation of processes to a achieve continuing improvement. During 2016 several actions were taken to meet the annual Safety, Health and Environment Program. Examples include weekly five-minute talks, projection of safety capsules, reading of the Safety Creed at the beginning of the work day, the medical and vision campaign, and the active calisthenics pauses aimed at preventing muscularskeletal lesions. Thus, we reiterate the importance of protecting the integrity of all the personnel and continuing to work to offer a safe, healthy environment. Focused on attention to a possible emergency, at PetStar we organize groups of volunteers with an attitude of service to make up the Safety and Hygiene Commission and the emergency brigades in each plant that actively take part in the training and simulacrums to give a prompt response for help or prevention, in case of an occurrence putting our personnel at risk.

PERSONNEL ENROLLED

% OF PETSTAR PERSONNEL (963)

Fire, first aid and search and rescue brigades

168

14%

Safety and hygiene commission

Training commission

BRIGADES AND COMMISSIONS

2016 SUSTAINABILITY REPORT PETSTAR

SAFETY WEEK On the occasion of the World Safety and Health at the Workplace day celebrated every April 28th, every year PetStar organizes a Safety Week with theoretical and practical training sessions for all personnel, promoting accident prevention and topics on health for disease prevention. INCIDENTS IN 2016 During 2016, 12 workplace incidents were reported at the national level, resulting in a rate of time lost from incidents (LTIR).

2016 LTIR PetStar 1.00

We will continue to redouble our efforts to achieve the 0.70 LTIR target for 2017 and by 2020 to achieve the target set by Coca-Cola México of 0.50.

SAFETY AGREEMENT WITH THE DEPARTMENT OF LABOR AND SOCIAL WELFARE

CONCEPT

2015

2016

0.20%

0.15%

Occupational diseases

Incidents of work

Days lost due to Incidents

589

495

Accident absenteeism rate

Victims / Deaths

INCIDENTS IN 2016

5 4 3

1.9

1.5

1.4

1.3

Guadalajara

Querétaro

Monterrey

Xalostoc

Recycling Toluca

1 0

Collection Toluca

ACCIDENTS

MAKING PET CONTAINER SUSTAINABLE

This pact has the objective of assuring execution of a program focused on promoting health and safety at the workplace applicable to all workers across the country. The pact was signed at the museum-auditorium located at the recycling plant and was presided over by Ignacio Rubí Salazar, undersecretary of Social Welfare at the Department of Labor and Public Welfare; Javier García Bejos, secretary of Labor in the state of Mexico; Jaime Cámara Creixell, CEO of PetStar; and Venancio Monroy Estrada, secretary of the Union of Workers in Chemical, Plastics and Similar Product Plants in Mexico, accompanied by federal and state authorities of the STPS and government of the state of Mexico and the city of Toluca. Shareholder representatives, company executives, employees and union representatives were also present.

In 2016 days lost because of incidents was reduced by over 15%.

In 2016 PetStar, as part of the Coca-Cola México industry, backing the safety and health for the close to 1,000 collaborators at the workplace, subscribed to a Safety Agreement with the Department of Labor and Public Welfare to incorporate a Self-management Program in Labor Safety and Health.

Acapulco

Gathering Mérida

San Luis Potosí

Valorization Plant

LTIR

56 “0” Accident Recognition

Ideas in Action Program

Accidents, as everyone knows, can happen. But with initiatives like the one we develop we have been able to protect and share responsibilities with our co-workers to maintain an extraordinary record in workplace safety.

Everything mentioned in this report would lack meaning if we didn’t listen carefully and with a sense of learning to those who collaborate with and make PetStar what it is today. In this spirit, Ideas in Action promotes and facilitates intelligent participation by all personnel through the generation, validation and implementation of ideas focused on obtaining common objectives.

The objective of this program is to recognize each plant’s effort in having reached zero accidents in over a year and motivating its personnel to continue to work at making the plant safe and healthy. These efforts contribute to reinforcing a culture of safety through the commitment of every member and their families to live the value of safety inside and outside the company with the conviction that the reasoning in a safe job should be a life style, making decisions and acting positively to prevent accidents.

This program at the forefront seeks to get at least 30% of the personnel to implement 30 ideas for improvement that should be executed in the course of a year; this process is one of the responsibilities of the human capital area and the resources assigned are part of the time the people who in the organizational structure of that area devote to it. 38% of our collaborators participate in this program.

◉◉ 38% of our collaborators participate in this program.

◉◉ 368 proposals for improvement were produced. ◉◉ 121 improvements were rewarded and implemented.

“Without well-being life is not life; it is just a state of languish and suffering.” Francois Rabelais

MAKING PET CONTAINER SUSTAINABLE

G4-EC8, G4-EC9

GRI

I, II

7, 9, 11, 10, 16

1, 2

THE EARTH CHARTER

SDG

THE GLOBAL COMPACT

2016 SUSTAINABILITY REPORT PETSTAR

“As a social force, one individual with an idea is worth ninety-nine with just an interest.” John Stuart Mill

Value Chain and Supplier Development At PetStar we are not alone. We understand that the professionalization and development of our suppliers will permit us to obtain quality raw material, opportunely. This is how we contribute to creating sources of formal, permanent employment. In 2016 we had almost 1,200 suppliers of material, people who carry out the function of basic material consolidators, through whom we serve close to 24,000 scavengers and trash collectors at the national level. Good relations with these suppliers are indispensable. At the collection plant in in Xalostoc, Ecatepec, state of de Mexico, we annually support through economic resources and payment in kind the celebration of December 12th, (the Virgin of Guadalupe day) and the Wasteco garbage dump’s Day of the Magi, which has allowed us to obtain 100% of the fill material for PetStar, as well as preferential prices in garbage reception material.

Similarly and with the same frequency, the company offers economic support for the saint’s day festivities in the town of San Pedro Xalostoc. In 2015 we donated 34,000 pesos and received greater community integration and better acceptance of the plant there, actions creating harmony and mutual benefit that fully align with the logic of responsible economics and solidarity. Additionally, and in a constant search to dignify the labor of scavengers, it is our intention in 2016 to have every collection center install a waiting room for use by the associate collectors; a space where they can receive payment in a comfortable pleasant setting in which they know and feel themselves to be an important part of our organization.

2016 SUSTAINABILITY REPORT PETSTAR

Testimonies from Scavengers and Associate Collectors “For me PetStar is a source of income. If this company didn’t exist, we would be with garbage... I hope it keeps recycling to continue to have an income for my family”. José Ángel Serna Ochoa Scavenger Santa Catarina Garbage Dump, Santa Catarina, Nuevo León.

“PetSstar is a blessing for us because we don’t have to struggle to sell. It’s a help because collecting enough is good for us because it’s a source of income”. Alma Delia Hernández Urban cart scavenger Guadalupe, Nuevo León.

“PetStar is a source of work for me. Without them there wouldn’t be a recycling company. Its main value is helping to avoid flooding and taking care of the environment”. Antonio Sánchez Urban tricycle scavenger Apodaca, Nuevo León.

“For me PetStar is a source of income. Your existence is very important because without you, where would we work? Besides, you take colors that others don’t… Your main value is the impact o society and the environment”. Aurelio Vaca Associate collector San Nicolás, Nuevo León.

“PetStar is a means of income, safety and support. With you a lot of families make a living (from scavenging) and help to make the environment less contaminated”. Carlos Zúñiga Associate collector Escobedo, Nuevo León.

MAKING PET CONTAINER SUSTAINABLE

“For me, PetStar is a source of employment. It’s important because it keeps creating jobs. Its main value is in its honesty”. Rubén Arias Depot San Luis Potosí, San Luis Potosí.

“PetStar is a responsible company. It’s important because it combats the garbage problem”. Jaime Zapata Depot San Luis Potosí, San Luis Potosí.

“PetStar means jobs, treats people well and is important to me to be able to keep on working”. Ángel Hernández Scavenger San Luis Potosí, San Luis Potosí.

“PetStar is an important source of jobs, it gives jobs to people and is honest”. Teodora Pérez Scavenger San Luis Potosí, San Luis Potosí.

“For the service it offers, PetStar symbolized a long-term relationship. Since I started to work for the company I realize the work I do has a great environmental, social and economic impact on those of us who work in recyclables; from the housewife and scavenger to my waste site”. La Glorieta, Associate Collector, City of Acapulco, Guerrero. In addition to these perceptions, quotes and comments from our collaborators, we should mention that our suppliers of different materials and services are classified as national and international. Local purchases make up 94% of the supplies we buy and services we contract.

60 For the development of our suppliers we carry out evaluation audits and work programs depending on the areas of opportunity detected in these audits and application of the ISO9001 norm to our value chain.

2016 SUSTAINABILITY REPORT PETSTAR

G4-EN1, G4-EN2, G4-EN3, G4-EN4, G4-EN5, G4-EN6, G4-EN27, G4-EN28, G4-EN31

II, III

6, 7, 12, 13, 15

GRI

THE EARTH CHARTER

SDG

THE GLOBAL COMPACT

Environmental Performance

We are responsible and transparent. In reference to conflict of interest between our suppliers and our personnel, we have an institutional rule that obligates all suppliers to refrain from establishing financial or other types of relationships with a company employee, and to declare any matter that might be considered a current or potential conflict of interest. In this respect, the points listed below may be considered: ▶▶ From first to second degree of consanguinity: parents, children, siblings, grandchildren and grandparents ▶▶ From first to second degree of affinity: spouse and in-laws ▶▶ Competition: natural or juridical person directly or indirectly related to the company or with a degree of consanguinity or affinity indicated above who works in companies devoted to the fabrication and/ or commercialization, distribution or importation of plastic products and, in general, all kinds of articles related or similar to those manufactured and commercialized by PetStar or that might be manufactured and/or commercialized by our company.

In 2016 over 71.6 million pesos invested in environmental projects

SUPPLIERS (RECYCLING PLANT)

2015

2016

National

272

350

International

Total

MAKING PET CONTAINER SUSTAINABLE

289

411

MDP

PTAR CO-GENERATION Total

31,4 40,3 71,7

62 Energy and fuels Energy and fuels

G4-EN15, G4-EN16, G4-EN18, G4-EN19

II, III

6, 7, 12, 13

GRI

THE EARTH CHARTER

SDG

THE GLOBAL COMPACT

Emissions

168,548,823 MJ

RENEWABLE SOURCES

· energy consumption ·

2016 SUSTAINABILITY REPORT PETSTAR

“All animal and human waste, if returned to the earth instead of throwing in the sea, “All animal and human waste, if returned will be enough to feed the world.” to the earth instead of throwing in the sea, Victor Hugo will be enough to feed the world.” Victor Hugo

Emissions

Carbon Footprint Comparison

40.43%

Petstar Recycled Resin vs. Virgin Resin As a company inserted in the circular economy that fully understands the implications it bears with human activity for the planet, at PetStar we have the objective of reducing 100% the emissions in the production of recycled resin by 2020, from the collection process to the recycling process. This will be done voluntarily because the company does not exceed the regulations for minimum emission levels.

416,894,979 MJ

2.5 Greenhouse effect gases (tCO2e/t PCR)

ENERGY CONSUMPTION

2.0 1.5 1.0

Apportionment of Carbon Footprint PetStar 2015 (shows the process emissions and process credits)

Annual Production

50,000 tons

Virgin Resin

0.303

PetStar Recycled Resin 2015

PetStar Recycled Resin 2016

0.9

2016 INDICATOR

· fuel and energy consumption ·

0.661

of food grade recycled PET resin

0.8 0.7 0.6 0.5

0.661 tCO2e/tPCR

59.57%

Greenhouse effect gases (tCO2e/t PCR)

NON-RENEWABLE SOURCES

2.330

0.5 0.0

248,346,156 MJ

0.4 0.3 0.2 0.1 0.0

Transport collection

Process collection plants

Transport of pacas to recycling plant

Credits per other pacas

Process plant recycling

Credits per polyolefin and others

Total of emissions

8, 337.90 MJ / ton

Apportionment of Carbon Footprint PetStar 2016 (shows the process emissions and process credits)

Note: The denominator of the fraction used to calculate the relationship of energy intensity is mega joules for tons of food grade recycled resin produced. The types of energy included in the relationship of intensity include: diesel, natural gas, LP gas, gasoline and electric energy. Energy intensity (direct and indirect energy consumption). *The energy impact is registered as an indicator of non-renewable sources (natural gas). MAKING PET CONTAINER SUSTAINABLE

0.8 0.7 0.6 0.5 0.4 0.3 0.303 tCO2e/tPCR

Energy intensity

Greenhouse effect gases (tCO2e/t PCR)

0.9

0.2 0.1 0.0

Credits per Transport Process Transport other pacas collection collection plants of pacas to recycling plant

Process plant recycling

Credits per polyolefin and others

Energy wind

Credits per energy wind

Cogeneration

Credits per Credits per cogeneration cogeneration of energy recovered heat

Total of emissions

64 Emissions of Greenhouse Effect Gases Emissions (GEI) Avoided vs Virgin Resin

Avoided vs Virgin Resin

33,050

83,450

72%

15,150

101,350

87%

Resin

Emissions

Production

Emissions

Virgin

2.330

50,000

116,500

PetStar 2015

0.661

50,000

PetStar 2016

0.303

50,000

(tCO2e/ton)

EMISSIONS OF VIRGIN RESIN*

(ton /year)

(tCO2e)

2016

0.661 t C02e/

0.303 t C02e/

ton produced

72%

87%

PCI Wood Mackenzie

Fewer emissions in its manufacturing that virgin resin

Our annual production of

Food Grade Recycled PET Resin avoids

87%

OF GREENHOUSE EFFECT EMISSIONS versus the production of

virgin resin

GRI

THE EARTH CHARTER

SDG

THE GLOBAL COMPACT

Water “Thousands have lived without love and not one without water.” W. H. Auden

ton produced

Water is simply our planet’s natural fuel and for those of us who live on it, under this premise the water we use in recycling passes through five cycles: wetting, washing, flotation, milling and prewashing; then it passes to the treatment plant.

ton produced

THIS IS

EQUIVALENT of 101,350 tons ANUALLY OF CO2 e

NON-CIRCULATION

OF ALL THE CARS IN MEXICO CITY FOR

2DAYS

*Assesment of PetStar's Sustainability Performance in 2016, PCI Wood Mackenzie by Helen MacGeough and Pieterjan Van Uytvank.

HACIENDO SUSTENTABLE EL ENVASE DE PET

6, 7, 12, 13

(%)

**Program to improve air quality in the Mexico City Metropolitan Zone 2011-2020, SEMARNAT and Ministry of Health (Mexico City and State of Mexico).

MAKING PET CONTAINER SUSTAINABLE

II, III

2016 SUSTAINABILITY REPORT PETSTAR

EMISISONS RECYCLED RESIN*

2015 2.33 t C02e/

G4-EN8, G4-EN10, G4-EN22

In 2016, total consumption was 68,889 liters of water and, as an example of our hydraulic efficiency, we processed 1.37 kg of PET per liter of water, which means we can process the equivalent of 55 PET bottles per liter of water.

G4-EN23

II, III

6, 7, 12, 13

GRI

THE EARTH CHARTER

SDG

THE GLOBAL COMPACT

2016 SUSTAINABILITY REPORT PETSTAR

Waste management We could not sustain all our initiatives of responsibility without adequate waste management. This is a medullar part of our practices and a priority at PetStar. Currently, the waste we generate can be quantified as follows:

TYPE OF WASTE

“Do not foul the fountain where you have sated your thirst.” William Shakespeare

WEIGHT 2015

2016

Urban solids

3,602 ton

4,428 ton

Hazardous

3 ton

5.7 ton

The total material used in our process is 100% evaluated.

PETSTAR GREENHOUSE

“If I knew the world would end tomorrow, I would still plant a tree.” Martin Luther King This is one of the initiatives we are most proud of because it is another example of caring for the environment and its components. In addition, it commits and defines us as agents of change in the context of the new business culture. Congruent with the concept of reuse, during the year reported we donated to our visitors plants in CocaCola bottles cut in half as flower pots.

Also, in our recycling plant in Toluca we set up a greenhouse that aims to assure the survival and reproduction of plants, by promoting the care and reevaluation of nature among visitors to PetStar’s Museum-Auditorium. The main objective of this greenhouse is to have a greater number of plants survive thanks to this facility that controls factors such as temperature, irrigation, humidity, solar radiation and others related to the favorable development and reproduction of the species. Before we had the greenhouse, an average of 40% of the plants was lost each year. On another note, the production of plants in the greenhouse makes it possible to prevent and control the effects of pillagers and plagues that destroy the plants in specific stages of vulnerability.

Donation of 6,000 succulent plants from the Museum-Auditorium’s green roof and reproduction of 2,000 plants for use in offices and green areas.

MAKING PET CONTAINER SUSTAINABLE

2016

G4-EN14

GRI

MAKING PET CONTAINER SUSTAINABLE

II, III

THE EARTH CHARTER

6, 7, 12, 13

SDG

THE GLOBAL COMPACT

2016 SUSTAINABILITY REPORT PETSTAR

To achieve the above, a series of alliances led to the creation of a Community Education and Child Development Center (CEDIC) in Chimalhuacán, state of Mexico, that offers education, food and medical services, as well as the development of life skills, for scavengers’ children so that they can live fully the rights of childhood and improve their quality of life and their families’. This project is carried out in an Alliance with Dibujando un Mañana,–responsible for coordinating the efforts of various organizations to provide the services offered by Comedor Santa María –a recognized association that gives daily meals to 250 boys and girls; Un Mañana para la Comunidad, that takes charge of the educational part through an innovative playful model; and HOPE, that provides medical attention to the Center’s children and the community at large.

Social Performance At PetStar we are moving from social responsibility to corporate sustainability, addressing the following objectives: ▶▶ Improving conditions for scavengers by giving them a formal role in the supply chain. ▶▶ Improving living condition for the scavengers’ children by providing them with education, medical care, nutrition and skill development services. ▶▶ Implementing different strategies to make it possible to generate value in the restrictive sphere of social, environmental and economic systems where we have a presence.

G4-EC7, G4EC8, G4-SO1

MAKING PET CONTAINER SUSTAINABLE

GRI

I, III

THE EARTH CHARTER

7, 9, 11, 16

SDG

THE GLOBAL COMPACT

Through the services offered by the CEDIC, 250 boys and girls associated with scavenging raise their academic performance, and have better health and nutrition regularizing parameters of size and weight; they internalize universal values and develop life skills that permit them to socialize and be in a position to decide, when the time arrives, if they want to work as scavengers —dignified scavenging— or continue in school to eventually do something else. This year over 2.0 mdp were destined to operating this Center and the comprehensive attention model was consolidating and enriched with the focus on Children’s Rights through workshops and a manual written for this purpose. Throughout 2016 work was done on the Center’s comprehensive planning, based on a master document that contributes to improving the coordination of the activities of the different social organizations supporting this great effort.

MAKING PET CONTAINER SUSTAINABLE

2016 SUSTAINABILITY REPORT PETSTAR

The Center is frequently visited by different media and public and private institutions that recognize the value of this space. The principal recognition comes from the testimonies by children who find it a daily oasis of well-being. Carlos Mendieta Zerón Social Responsibility Manager

2016 SUSTAINABILITY REPORT PETSTAR

Alliances with the Civic Society

Promotora ACCSE, S.A.

PetStar’s social commitment is inalterable and is reflected in an authentic interest in contributing to the common good. In 2016 our economic donations to different causes was 4.07 million pesos. Similarly, 300 handbooks for Environmental Education Workshops and toys valued at 21,328,000 pesos for children at the dump in Nezahualcóyotl, state of Mexico, were donated. PARTNERSHIPS

PROJECTS

Dibujando un Mañana

Operation and Coordination of the Community Education and Child Development Center (CEDIC).

Comedor Santa María

Support for the Christmas celebration for all the children taken care of in the dining room network.

Un Mañana para la Comunidad Fundación Tláloc Proyecto Sierra Gorda Environmental education Operation Clean Sweep Global Compact Earth Charter Cemefi

MAKING PET CONTAINER SUSTAINABLE

Accompaniment to the Center’s work in education. Training days for volunteers in the framework of the World Recycling Day, World Day without Automobiles (Metropolitan Bike Ride and To the Valley by Bike city rides); Reforestation in the Nevado de Toluca mountain. Support for consolidating a network of PET collectors in the Sierra Gorda natural reserve in Querétaro. Reproduction of 300 environmental education workbooks. Commit to avoiding the arrival of pellet material, a product of the recycling process, to the ocean. We began our adherence to this important corporate sustainability initiative. It was finalized in January 2016. We continued to promote the Earth Charter’s message among our visitors to the Museum- Auditorium. We committed to devoting at least 1% of profits before taxes to social projects.

CONCEPT

2016

Beneficiaries

25,000

Employees involved in social projects

394

Volunteer days

International Confederation of Family Support

Accompaniment received to strengthen our social responsibility through participation in The Mexican Center for Philanthropy program, Distinctive ESR 2015. Give workshops on children’s rights to boys and girls, their parents and the A Tomorrow for the Community teaching team at the Education and Childhood Development Community Center.

ACIR Radio, Toluca Group

Promote in and convoke the Valley of Toluca’s general public to participate in the World Recycling Day and in To the Valley by Bike event, the major metropolitan bike ride on the World Day without Automobiles.

The Universidad Anáhuac

Anáhuac Chair. Lectures are given during engineering week and during the institution’s green month.

Autonomous University of the State of Mexico (UAEMEX)

Students majoring in Sustainable Energy Systems Engineering make visits during the semester.

Environment Department of the City of Toluca

Reforestation of the Nevado de Toluca mountain.

Secretary of the Environment of the state of Mexico

World Recycling Day and World Day without Automobiles celebration in the metropolitan park in the city of Toluca.

Jóvenes Independientes Otomíes de San Mateo Capulhuac

Community collection model.

San Pedro Xalostoc

Support is given to those who continue traditions by celebrating their patron saint.

Waste Co

There is a commercial relationship, but support is also given to the scavengers who work in that area for the Three Kings and the Virgin of Guadalupe holy day.

2016 SUSTAINABILITY REPORT PETSTAR

Corporate Chair at The Universidad Anáhuac

Create environmental awareness as the owner of our waste, taking to responsibility for the proper disposal of it to reduce the negative impact on the environment.

In 2015 an agreement was signed with The Universidad Anáhuac for a corporate chair which seeks bettering life within the community and establishes a commitment to support areas of common interest, such as collaboration in the professional development of AU students and alumni through academic, research, publication, dissemination and professional practice projects. In 2016 various lectures were given by our executives and visits to PetStar’s museum-auditorium were promoted. In addition, different efforts were made to create awareness in the student community of the important subject of recycling.

Museum-Auditorium PetStar’s museum-auditorium, located at the Toluca Recycling Plant, has the Platinum Leed certification, an international certification system of sustainable buildings developed by the Council of Green Construction in the United States. This is the first museum in Latin America to achieve this level of certification and enables us to

create an educational space in tune with the company’s philosophy of excellence; a space that helps people understand the benefits of sustainability, in the framework of the recycling process, through environmental education and promotion of the responsibility shared by society, the authorities and private business.

2016

MAKING PET CONTAINER SUSTAINABLE

12,795 visitors covering a percentage of all the interest groups: schools, families, authorities, shareholders, NGO’s and influencers.

2016 SUSTAINABILITY REPORT PETSTAR

VISITOR STATISTICS

Total visitors

2014

2015

2016

3,608

12,176

12,795

AUDIENCES

Schools (Universities)

42%

Schools (Adolescents)

45%

Schools (Children)

Employees and families

3.5%

Shareholders

0.9%

Authorities

0.6%

Others

MAKING PET CONTAINER SUSTAINABLE

These results create brand value as they demonstrate the commitment to sustainability and social responsibility of PetStar shareholder’s packaging (Arca Continental, Coca-Cola de México, Bepensa Bebidas, Corporación del Fuerte, Corporación Rica, Embotelladora del Nayar and Embotelladora de Colima), all a part of the Coca-Cola industry in Mexico. It should be noted that each visitor to the PetStar museum-auditorium is invited to express an opinion in a satisfaction poll to suggest how we can improve content, tours and activities focused on young children. Soon updates will be made in the contents of the museum to make them more dynamic, including the subject of climate change, also included in PetStar’s mission, the Earth Charter and Global Compact, initiatives to which we have chosen to wholeheartedly subscribe.

2016 SUSTAINABILITY REPORT PETSTAR

At PetStar, the largest Food Grade Recycling Plant in the world, we live sustainability

We recycle

We produce

million

of recycles food grade PET resin annually

3,100 bottles a year

Thanks to development of an Inclusive Collection Model, we contribute to dignifying scavengers by procuring their childrenâ&#x20AC;&#x2122;s well-being through a

We reduce the emission of

greenhouse effect gases

87%

up to against virgin resin through

renewable energy

We promote the

Community Childhood Development Center

recycling culture and

environmental commitment through the

Program your visit to email

comunicacion@petstar.mx

MAKING PET CONTAINER SUSTAINABLE

2016 SUSTAINABILITY REPORT PETSTAR

Certifications and Recognition PetStar seeks to exercise leadership responsibly promoting sustainable development and formalization of plastics recycling in Mexico and striving to be a reference of excellence at the international level by demonstrating that this work can be done with high standards assured by a philosophy of excellence.

MAKING PET CONTAINER SUSTAINABLE

In October, 2016, we had the opportunity to represent the Global Compactâ&#x20AC;&#x2122;s Mexican Network during the work of the U.N-Habitat III Meeting: housing and urban development, held in Quito, Ecuador from October 17-20, where we shared our PetStar Inclusive Collection Model. In similar fashion and with the same representation, we took part in the regional meeting of the Local Networks of the Americas, with high-level representatives from the business, government, and civic society sectors, and with the executive director of the Global Compact, Lise Kingo.

2016 SUSTAINABILITY REPORT PETSTAR

ISO 9001 In 2014 the certification in process and product quality under the ISO 9001 norm was given to the recycling plant in Toluca; in 2015, to the Ecatepec Collection Plant and in 2016, to the other seven collection plants at the national level, as well as the sub-product evaluation plant in Toluca.

ISO 14001 In 2015 we achieved the ISO 14001 norm certification of environmental material processes at the recycling plant in Toluca and in 2017 we will certify the eight collection plants at the national level as well as the sub-product evaluation plant in Toluca.

ISO 22000 In 2014 certification in the process and product innocuity under the ISO 22000 norm was achieved at the recycling plant in Toluca.

ISO 50001 In 2016 the processes in energy management were certified under the ISO 5001 norm at the recycling plant in Toluca, and in 2017 we will certify the eight collection plants at the national level, as well as the sub-product evaluation plant in Toluca.

OHSAS 18001 In 2004 we received certification for our safety and occupational health processes under the OHSAS 18001 norm at the recycling plant in Toluca.

MAKING PET CONTAINER SUSTAINABLE

Independently of the credentials and certifications we have received, we are excited by the fact that other important actors recognize PetStar as a company friendly and responsible towards the Earth. That’s why we share our distinctions, agreements, recognition and participation in important organizations with you:

▶▶ Expansión Súper Empresas (recognition awarded by the Expansion Editorial Group, which publishes the Company Ranking—the place where everyone wants to work; in 2016 we were number 41 among companies with over 500 employees. ▶▶ Operation Clean Sweep (Collection of PET residue from all our operations to reintroduce them in the same productive process. In 2015, PetStar subscribed to this initiative associated with the ACC (American Chemistry Council, Plastics Division) and the Plastics Industry Trade Association). Thus, we received recognition for zero loss of pellets. ▶▶ Since 2015 PetStar has received the distinction of “Socially Responsible Company” (SRC) awarded by the Mexican Center for Philanthropy (CEMEFI) and affiliated with the “SRC of 1% Social Investment”, which means that it will donate at least 1% of profit before taxes to a social cause to contribute to the construction of a more just society and better country. Since 2016 the company has joined the program, SRC Committed to Social Inclusion”. ▶▶ For the good environmental performance of its fleet, in 2016 PetStar was able to enroll in the Clean Transport Program (Transporte Limpio) awarded by the Ministry of the Environment and Natural Resources (SEMARNAT, Secretaría de Medio Ambiente y Recursos Naturales). ▶▶ In 2015, the PetStar Museum-Auditorium obtained the Platinum Leadership in Energy & Environmental Design (Leed) awarded by the U.S. Green Building Council as a sustainable building, becoming the first museum in Latin America to reach this level of certification. ▶▶ In 2015 the recycling plant in Toluca obtained distinction as a clean industry at the federal level awarded by Federal Attorney’s Office of Environmental Protection, as well as at the state level, awarded by the state of Mexico’s Attorney’s Office for Environmental Protection. ▶▶ In 2016 PetStar signed a consensus agreement with the Ministry of Labor and Social Welfare to incorporate all its plants into the Self-Management in Safety and Health in the Workplace Program and obtained certification in the collection plants in San Luis Potosí, Mérida, Monterrey, Acapulco and Guadalajara, and in 2017 the collection plants in Ecatepec, Querétaro and Toluca will be certified, together with the recycling plant in Toluca and the evaluation plant there.

2016 SUSTAINABILITY REPORT PETSTAR

CONTENTS GRI 4

Table of GRI Indicators CONTENTS GRI 4

G4-24

List the interest groups linked to the organization.

G4-25

Indicate on what basis the interest groups with which the organization works are chosen.

G4-26

Describe the organization’s focus on participation by interest groups, including the frequency with which there is collaboration with different types of groups of interested parties.

G4-27

Note what key questions and problems have arisen stemming from participation by interest groups.

STRATEGY AND ANALYSIS G4-1

Statement by the chief executive of the organization’s decisions.

G4-2

Description of the main effects, risks and opportunities.

REPORT PROFILE

ORGANIZATIONAL PROFILE G4-3

PetStar, S.A.P.I. de C.V.

G4-4

The organization’s most important brands, products and services.

G4-5

Location of the organization’s headquarters.

PAGE / DIRECT RESPONSE

PARTICIPATION OF INTEREST GROUPS

PAGE / DIRECT RESPONSE

G4-28

Period covered by the report.

11, 44

G4-29

Date of the last report (if pertinent).

Monte Elbruz 124-604, Col. Polanco II Secc., 11560 Mexico City

G4-30

Cycle of report presentation.

G4-31

Supply a contact point.

G4-32

Indicate what option in conformity with the Guide the organization has chosen.

G4-33

Describe the organization’s current policy and practices regarding external verification of the report.

G4-6

Indicate in how many countries the organization operates and name those countries where the organization carries out significant operations or that have specific relevance to the sustainability subjects, the object of this report.

G4-7

Nature of ownership and legal form.

G4-8

Indicate what markets are served.

G4-9

Define the organization’s scale by indicating:: ▶▶ number of employees; ▶▶ number of operations; ▶▶ net sales; ▶▶ capitalization, separated in terms of debt and patrimony; ▶▶ and quantity of products and services offered.

G4-10

Number of employees by labor contract and sex.

G4-11

Percentage of employees covered by collective contracts.

ETHICS AND INTEGRITY

G4-12

Describe the organization’s supply chain.

G4-56

G4-13

Inform about all significant changes that have occurred during the period.

Describe the organization’s values, principles, standards and norms, such as codes of conduct and codes of ethics.

G4-14

Indicate, if pertinent, how the organization approaches the principle of precaution.

G4-57

G4-15

List the external initiatives the organization subscribes to or has adopted.

Describe the internal and external mechanisms favoring the code and conduct, and legality.

G4-16

List the organizations to which the organization belongs.

G4-58

Describe the internal and external mechanisms for reporting unethical or illegal conduct and matters related to the organization’s integrity.

11, 44

GOVERNANCE G4-34

Describe the structure of the organization’s management.

G4-38

Describe the composition of the top governing organ and its committees.

G4-39

Indicate if the person who presides over this top management organ also occupies an executive position.

G4-40

Describe the processes for naming and selecting membership in the top governing organ and its committees.

G4-49

Describe the process for transmitting important concerns by the top organ to the government.

MATERIAL ASPECTS AND COVERAGE G4-17

List the entities that appear in the organization’s consolidated financial statements and other equivalent documents.

G4-18

Describe the process that has been followed to determine the report content and coverage of each aspect.

G4-19

List the material aspects identified during the process of defining the report content.

G4-20

Indicate the coverage of each material aspect within the organization.

G4-21

Indicate the coverage of each material aspect outside the organization.

G4-22

Describe the consequences of the reformulation of the information in prior reports and the causes.

G4-23

Note all significant changes in the range and coverage of each aspect with regard to previous reports.

MAKING PET CONTAINER SUSTAINABLE

CATEGORY: ECONOMIC ASPECT: ECONOMIC PERFORMANCE G4-EC1

Direct generated and distributed economic value.

G4-EC3

Coverage of the organization’s obligations derived from its benefit plan.

ASPECT: INDIRECT ECONOMIC CONSEQUENCES G4-EC7

Development and impact of investment in infrastructure and types of service.

G4-EC8

Significant indirect economic impacts and their range.

CATEGORY: ENVIROMENT ASPECT: MATERIALS G4-EN1

Materials by weight and volume.

G4-EN2

Percentage of materials used that are recyclable materials.

2016 SUSTAINABILITY REPORT PETSTAR

CONTENTS GRI 4

PAGE / DIRECT RESPONSE

G4-EN3

Consumption of internal energy.

G4-EN5

Energy intensity.

G4-EN6

Reduction of energy consumption.

ASPECT: WATER G4-EN8

Total reception of water by source.

G4-EN9

Water sources that have been significantly affected by reception of water.

G4-EN10

Percentage and total volume of recycled and reused water.

Identification of significant centers and suppliers in which free association and the right to adhere to collective agreements may be infringed or threatened, and measures adopted to defend these rights.

G4-HR4

Indirect emission of greenhouse effect gases from generating energy (Range 2).

Identification of centers and suppliers with a significant risk of exploiting children and measures adopted to contribute to abolishing it.

Other indirect greenhouse effect gas emissions (Range 3).

G4-EN17

Intensity of greenhouse effect gas emissions

G4-EN18

Reduction of greenhouse effect gas emissions.

G4-EN19

Emissions of substances depleting the ozone.

G4-EN20

NOx, SOx and other significant atmospheric emissions.

G4-EN21

NOx, SOx y otras emisiones atmosféricas significativas.

ASPECT: COMPLIANCE WITH REGULATIONS G4-EN29

Monetary value of significant fines and number of non-monetary sanctions for incompliance with environmental legislation and normativity.

Centers and suppliers with a significant risk of being the origin of forced labor and measures adopted to contribution to the elimination of all forms of this practice.

G4-HR6

SUBCATEGORY: LABOR PRACTICES AND DECENT EMPLOYMENT ASPECT: EMPLOYMENT G4-LA1

Number and rate of employee hiring and average rotation, by monetary (?) group, sex and region.

G4-LA2

Social benefits for full-time employees not offered to temporary or part-time employees, by significant activity locations.

ASPECT: LABOR HEALTH AND SAFETY SALUD G4-LA5

Percentage of workers represented in formal health and safety joint committees for executives and employees, established to control and advise on labor health and safety programs.

G4-LA6

Type and rate of injuries, job-related diseases, days lost, absenteeism and number of job-related fatalities by region and sex.

Workers whose profession has an incidence of high risk or disease.

ASPECT: DIVERSITY AND EQUAL OPPORTUNITY G4-LA12

Composition of the governing bodies broken down by professional category, sex, age, minority and other indicators of diversity.

ASPECT: EQUAL DISTRIBUTION BETWEEN MEN AND WOMEN G4-LA13

Relationship between men’s base salary and women’s, broken down by professional category and by significant job location.

For same position and obligations, same salary for men and women.

ASPECT: INVESTMENT G4-HR1

Number and percentage of contracts and significant investment agreements that include human rights clauses or that have been the object of analysis on the question of human rights.

15, 35

ASPECT: NON- DISCRIMINATION G4-HR3

Number of cases of discrimination and corrective measures adopted.

MAKING PET CONTAINER SUSTAINABLE

15, 35

ASPECT: EVALUATION

Number and percentage of centers that have been the object of examination or evaluation for impact in the question of human rights.

G4-HR9

15, 35

ASPECT: EVALUATION OF MATERIALS SUPPLIERS IN THE SUBJECT OF HUMAN RIGHTS G4-HR11

Significant negative impact on human rights, real and potential, in the supply chain, and measures adopted.

15, 35

SUBCATEGORY: CIVIC SOCIETY ASPECT: LOCAL COMMUNITIES G4-SO1

Percentage of centers where development programs have been implanted, evaluation of impact and participation by local community.

ASPECT: FIGHT AGAINST CORRUPTION

CATEGORY: SOCIAL PERFORMANCE

G4-LA7

15, 35

ASPECT: FORCED LABOR

G4-EN16

15, 35

ASPECT: CHILD LABOR G4-HR5

ASPECT: EMISSIONS G4-EN15

PAGE / DIRECT RESPONSE

ASPECT: FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING

ASPECT: ENERGY

15, 35

G4-SO3

Number and percentage of centers in which significant risks related to corruption have been detected.

G4-SO4

Policies and communication and training procedures on the fight against corruption.

G4-SO5

Confirmed cases of corruption and measures adopted.

2016 SUSTAINABILITY REPORT PETSTAR

Principles of the Earth Charter PRINCIPLES

Sustainable Development Goals SDG

PAGE

Zero hunger Put an end to hunger, achieve food safety and improve nutrition, and promote sustainable agriculture. Health and well-being Guarantee a healthy life and promote well-being for everyone at every age.

Respect the Earth and life in all its diversity.

Protect the community of life with understanding, compassion and love.

Construct democratic societies that are just, participative, sustainable and peaceful.

Ensure that the fruits and beauty of the Earth are preserved for the present and future generations.

4, 5, 6, 11, 15, 28, 32, 35, 45, 48, 49 51, 52, 53, 57, 70

Protect and restore the Earthâ&#x20AC;&#x2122;s ecological systems, with special concern for biological diversity and the natural processes that sustain life.

Avoid doing damage as the best method of environmental protection, and when knowledge is limited, proceed with caution.

Adopt patterns of production, consumption and reproduction that safeguard the Earthâ&#x20AC;&#x2122;s regenerative capacities, human rights and the welfare of the community.

Promote the study of ecological sustainability and the open exchange of knowledge acquired, as well as extensive application of it.

Clean water and sanitation Guarantee the availability of water and its sustainable management and sanitation for everyone.

4, 5, 6, 11, 28, 32, 45, 57, 61, 63, 65, 66, 68

III. SOCIAL AND ECONOMIC JUSTICE 9

Eradicate poverty as an ethical, social and environmental imperative.

Ensure that the economic activities and institutions, at all levels, promote human development equitably and sustainably.

Affirm gender equality and impartiality as pre-requisites for sustainable development and ensure universal access to education, healthcare and economic opportunity.

Defend the right of everyone, without discrimination, to a natural and social environment that supports human dignity, physical health and spiritual well-being, with special attention to indigenous populations and minorities.

4, 5, 6, 15, 18,28, 30, 35, 44, 45, 48, 49, 51, 52, 53, 61, 63, 65, 66, 68, 70

Fortify democratic institutions at all levels and offer transparency and accountability in governance, inclusive participation in decision making and access to justice.

Integrate into formal education and life-long learning the skills, knowledge and values necessary for a sustainable way of life.

Treat all living beings with respect and consideration.

Promote a culture of tolerance, non-violence and peace.

4, 5, 6, 15, 18, 28, 30, 32, 35, 45

PAGE 4, 5, 6, 11, 15, 28, 32, 44, 48, 49, 51, 57, 70 2, 32, 70

5, 15, 28, 48, 49, 51, 52, 53

5, 28, 45

15, 18, 28, 49, 51, 52, 53

5, 28, 63, 65

Affordable, non-contaminating energy Guarantee access to affordable, safe, sustainable and modern energy for everyone.

5, 28, 63, 65, 66, 68, 69

Decent work and economic growth Promote sustainable inclusive economic growth and full and productive decent work for everyone.

4, 5, 6, 15, 18, 28, 32, 35, 44, 48, 49, 51, 52, 53

Industry, innovation, infrastructure Build resilient infrastructure, promote inclusive sustainable industrialization and encourage innovation.

5, 28, 32, 44, 45, 57, 70

Reduction of inequalities Reduce inequality within and between countries.

5, 15, 18, 28, 32, 35, 45, 48, 49, 51, 52, 53, 57

Sustainable cities and communities Achieve cities and human settlements that are inclusive, safe, resilient and sustainable.

4, 5, 6, 11, 15, 28, 32, 35, 45, 48, 49, 51, 53, 57, 76

Responsible production and consumption Guarantee sustainable forms of consumption and protection.

4, 5, 6, 11, 18, 28, 30, 32, 45, 48, 61, 63, 65, 66, 68

Pro climate action Adopt urgent measures to combat climate change and its effects.

IV. DEMOCRACY, NON-VIOLENCE AND PEACE 13

Quality education Guarantee inclusive, equitable and quality education and promote learning opportunities for everyone throughout life. Gender equality Achieve gender equality and empower women and girls.

II. ECOLOGICAL INTEGRITY

MAKING PET CONTAINER SUSTAINABLE

DESCRIPTION Put an end to poverty End poverty for everyone in the entire world.

I. RESPECT AND PROTECTION FOR THE COMMUNITY OF LIFE 1

Underwater life Conserve and use sustainably oceans, seas and marine resources for sustainable development.

5, 11, 28, 32, 45, 61, 63, 65, 66, 68 5, 28, 45

Terrestrial ecosystem life Protect, reestablish and promote the sustainable use of terrestrial ecosystems, carry out a sustainable ordering of forests, fight against desertification, deter and revert the degradation of land and put a stop to the loss of biological diversity.

5, 11, 28, 45, 61

Peace, justice and solid institutions Promote peaceful, inclusive societies for sustainable development, facilitate access to justice and create efficient, responsible and inclusive institutions at all levels.

4, 5, 6, 18, 28, 32, 45, 49, 51, 52, 53, 57, 70

Alliances to achieve these objectives Strengthen the means of executing and revitalizing the world alliance for sustainable development.

4, 5, 6, 15, 18, 28, 32, 35, 45, 51, 52, 53

92 Global Compact AREAS

HUMAN RIGHTS

LABOR ASPECTS

ENVIRONMENT

ANTICORRUPTION

PRINCIPLES OF THE GLOBAL COMPACT

GRI G4 INDICATOR

PAGE

HR-1, HR-3-, HR-4, HR-5, HR-6, HR-9, HR-11

15, 35

G4-11

HR-6

15, 35

G4-10, LA-12

Companies should support and respect the protection of fundamental, internationally recognized human rights in their sphere of influence.

Companies should ensure that their businesses are not accomplices in violating human rights.

Companies should support freedom of affiliation and effective recognition of the right to collective bargaining.

Companies should support the elimination of all forms of forced labor or labor done under duress.

Companies should support the eradication of child labor.

Companies should support the abolition of discriminatory practices in jobs and occupations.

Companies should maintain a preventive focus favoring the environment.

EN-1,EN-3, EN-8, EN-15, EN-16, EN-20, EN-21

32- 65

Companies should foment initiatives promoting greater environmental responsibility.

EN-1, EN-2, EN-3, EN-6, EN-8, EN-9, EN-10, EN-15,EN-16, EN-20, EN-21, EN-29

32-65

Companies should favor the development and dissemination of technologies that respect the environment.

G4-2

Companies should labor against corruption in all forms, including extortion and bribery.

MAKING PET CONTAINER SUSTAINABLE

G4-4

11, 44

EN-6

G4-56, G4-57, G4-58

28-30