by your side,
always
2022 integrated annual report
2
femsa integrated annual report 2022
contents
3 By Your Side, Always
4 How We Create Value
8 Dear Shareholders
15 Company Overview & 2022 Results
32 Our Sustainability Strategy
40 Our People
48 Our Community
58 Our Planet
67 FEMSA Foundation
74 Governance
86 Financial Summary
89 Management Discussion & Analysis
97 Appendix
97 About this Report
98
Stakeholder Engagement
99 Key Memberships & Associations
100 Key ESG Data
113 GRI Content Index
131 TCFD Index
134 Sustainability-Linked Bond Framework
139 ESG Independent Limited Assurance Report
143 SASB Index
147 UN Sustainable Development Goals
148 Contact
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by your side, always
THIS MEANS:
The world around us is changing: new technologies
allow us to stay permanently connected to the world,
while opening up the possibility to improve our
efficiency in areas such as energy, water and waste.
The world is going through great transformations in response to
the macroeconomic environment, geopolitical changes and the
fluctuations of global markets – propelled by urgent sustainable
development issues, from climate change and nature loss to
inequality and social justice.
In response, global citizens and consumers are changing their
patterns, preferences and priorities, becoming more aware of
their health and environment, while demanding the equitable
treatment and human rights they deserve. They are becom-
ing more informed, digitized and connected while acting with
greater purpose and passion.
At FEMSA, we have transformed ourselves to ensure that we
are agents of positive change in our communities. We have
reinforced our purpose, placing our customers and consumers
at the center of everything we do.
Our inspiration has always been, and will continue to be, the
people we serve and the many stakeholders we are proud to
stand beside. By your side, always.
As a testament to the transparency and open communication
channels we strive to maintain with all our stakeholders, we
are pleased to share with you a summary of our progress and
ongoing transformations in this 2022 Annual Report.
There is always a FEMSA
product or service close to you,
wherever you are...
The initiatives and actions
of our more than 354,000
employees always aim toward
sustainable growth and the creation
of economic and social value...
+130 years of history reflects
the strength of our foundation
and represents a springboard
to our shared future.
By your side, always:
watch video
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how we create value
1. Mission and Vision
Our
Mission
Our
Vision
To generate economic and social value through companies
and institutions.
We generate economic value through designing, building
and scaling mass business models, which enable us to
meet our customers’ daily needs in a distinguished and
efficient manner.
We generate social value contributing to the improvement
of the communities we serve through our actions, the
comprehensive development of our employees, and with
value propositions that generate wellbeing.
Our focus towards accomplish our mission can only be
compared with our passion to achieve our strategic goals:
Be the best owner, partner and operator of our businesses
in the long term.
Aspire to double the value of our business every 5 years.
Be leaders in the markets where we operate.
Be the best employer and neighbor to the communities
in which we operate.
Our Mission and Vision
lead our path and
set the guidelines for
planning strategies
and projects aimed for
success in attracting
and satisfying consumer
demand, consistently
generating economic
value and greater social
development for our
stakeholders.
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2. Capital Inputs
Stocks of value that are increased, decreased or transformed through FEMSA’s
activities and outputs.
Financial
Manufactured
Intellectual
Human:
Our People
Social &
Relationship:
Our Community
Natural:
Our Planet
We utilize capital
from equity and debt
markets, as well as
cash flows derived
principally from our
businesses,
to produce goods
and provide services
to the market.
We rely on our
physical infrastructure,
including owned and
leased properties,
tools, technology,
machinery and
equipment,
to produce goods
and provide services
to the market.
With a focus on
innovation and
digitalization,
we leverage our
intellectual property
and multi-format
expertise to
continually strengthen
our customer-centric
ecosystem.
We develop the
competencies
and experience of
our diverse team
members around the
world, empowering
them to lead, manage
and collaborate for
our collective success.
Our social license to
operate depends on
a foundation of trust
with stakeholders and
business partners
(e.g., clients/
consumers, suppliers,
investors, NGOs,
communities,
regulatory authorities).
We use renewable
and non-renewable
resources for
products and
packaging, including
raw materials
and agricultural
commodities.
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3. Business Model
We are a focused leader in Retail and Beverages, leveraged and connected by a Digital
customer-centric ecosystem to maximize value creation.
Everything we do across our three core business platforms is motivated and inspired
by our commitment to Our People, Our Community and Our Planet, underscored
by strong Governance practices.
Excellent long-term growth opportunities,
comprised of FEMSA Proximity
(Americas and Europe), Fuel and Health
Retail
Leveraging our leading competitive
position and excellent execution,
combined with financial strength
and strategic opportunities
Coca-Cola
FEMSA
Building value-added financial and
digital ecosystem while enabling
and leveraging the strategic assets of
FEMSA’s core business verticals
Digital@
FEMSA
Our People
Our People’s
wellbeing, decent
work and professional
growth
s
t
n
e
m
t
i
m
m
o
c
r
u
O
Our
Community
Development and
wellbeing within the
communities where
we operate
Our Planet
Harmony with the
environment and
sustainable use of
natural resources
Governance
The use of corporate
governance best
practices
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4. Examples of Capital Outputs & Value Created
Financial
Manufactured
Intellectual
Human:
Our People
Social &
Relationship:
Our Community
Natural:
Our Planet
US$ 34.5 Bn
Total revenues
US$ 3.0 Bn
Income from Operations1
US$ 4.8 Bn
EBITDA2
Capital expenditures to
expand and strengthen
infrastructure, improve
leased properties, invest in
information technology and
open/refurbish new stores
56 bottling plants
and 3.8 Bn unit cases
sold by Coca-Cola FEMSA
12.9 M OXXO PREMIA
active users and +7 M
users in FEMSA Health
loyalty programs
Digital sales representing
~11% of Coca-Cola
FEMSA’s sales
+800,000 active B2B
digital users of Juntos+
Coca-Cola FEMSA
27% of women in
executive positions
+690 Community
Wellbeing initiatives
6,700 senior or
disabled people employed
+3.7 M beneficiaries of
community programs
87% score on
FEMSA’s Organizational
Climate Diagnostic
3.9 M Spin by OXXO
active users in Mexico,
enabling financial inclusion
58% of FEMSA’s
electricity needs from
renewable sources
1.46 liters of water per
liter of beverage produced
efficiency achieved by
Coca-Cola FEMSA
+38,000 tonnes
of plastic recycled by PTM
and 80% of PTM’s products
made from recycled
materials
5. Impact
Transforming our communities by generating social value
aligned to global sustainable development imperatives.
1 Company’s key performance indicator.
2 EBITDA defined as income from operations plus depreciation, amortization and other non-cash items.
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femsa integrated annual report 2022
Daniel
Rodríguez Cofré
Chief Executive
Officer
José Antonio
Fernández Carbajal
Executive Chairman
of the Board
dear shareholders
From socioeconomic shifts and advances in
technology, to the impacts of climate change
and the rise of conscious consumerism, FEMSA
is responding to, and evolving with, a changing
world and the macro trends that are shaping
our markets and communities.
Yet, amidst an accelerating pace of
change, we have remained grounded
in a clear understanding of the things
that are most important to our path for
success– along which we are guided
by one key principle: customers and
consumers are at the center of
everything that we do.
In 2022, FEMSA began a deep review
of our strategy with the purpose of
ensuring that we are best equipped to
pursue and maximize value creation for
all our stakeholders for the long-term.
We undertook an exhaustive analysis
defining three components:
1. FEMSA’s strategic priorities
and outline how we expect to achieve them;
2. Comprehensive, long-range plans
to execute on those priorities; and
3. Strategic focus to achieve that
long-range vision.
The results of this unique assessment led to what is now called
FEMSA Forward.
Before we share more with you about these plans, we would like to first take
a moment to highlight a few of the many ways during 2022 that we began to
execute on the six priorities we identified in the first phase of our strategic
review. We organize them according to three “Whats,” or areas of focus, which
will be achieved through and accompanied by three “Hows.”
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FEMSA priorities
WHATs
HOWs
Continued
Strong Growth
Rooted
Sustainability
Go Digital
CUSTOMERS
AND CONSUMERS
Enhance our Talent
& Culture
Balance Risk/
Return Profile
Proactive Engagement
with our Audiences
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These are our
areas of focus.
Our WHATs.
Continued Strong Growth
Go Digital
Balance Risk/Return Profile
We are achieving balanced and sustain-
able growth by capitalizing on existing
and new opportunities to create value
in our core businesses. This includes
growing in both top line and profitability,
strengthening our market position and
finding new and innovative ways to satisfy
our customers’ needs. Our business units
have ambitious revenue and EBITDA
targets for the next five years and we
are pleased to say that we are well on
our way to realizing those aspirations
following the positive momentum we saw
behind the full year’s financial results.
In 2022, FEMSA’s total revenues
increased 21.0% for the year as
compared to 2021 to Ps. 673.2 billion
(US$ 34.5 billion), reflecting growth
across our business units. Income
from operations increased 14.3% and
consolidated net income decreased to
Ps. 34.7 billion (US$ 1.8 billion).
Net majority income was Ps. 6.68 per
FEMSA unit3 and US$ 3.43 per FEMSA
ADS. Our consolidated net debt posi-
tion4 at year-end was Ps. 201.6 billion
(US$ 10.3 billion), and our capital ex-
penditures amounted to Ps. 34.4 billion
(US$ 1.8 billion). Our year-end cash
position was more than Ps. 83.4 billion
(US$ 4.3 billion).
Technology continues to enable
companies to enter new markets and
segments that were not accessible
before. With the aim of better serving the
needs of our customers and consumers,
we are harnessing the power of data and
technology to enhance our products,
services and operations, expand financial
inclusion opportunities and build new
business models fueled by digital tools.
In 2022, we received authorization
to operate as a financial technology
institution in Mexico, positioning us to
broaden our presence in the financial
services market. Our loyalty program,
OXXO PREMIA, and digital wallet, Spin by
OXXO, grew at an accelerated pace in
2022, reaching more than 12.9 million
and 3.9 million active users, respectively.
We are also finding exciting new ways to
combine FEMSA’s supply chain expertise
with digital enablers for order taking and
payment solutions. Coca-Cola FEMSA’s
omnichannel multi-category commercial
platform continued to grow during the
year, with digital sales representing ap-
proximately 11% of total sales. OXXO and
Coca-Cola FEMSA also began pilot testing
new ways to work together to reach new,
typically underserved clients by utilizing
the digital tools of the FEMSA ecosystem.
Our mindset is global, whether that
relates to talent, geographic footprint
or the positive impact we know we can
have on the world. To support a bal-
anced risk/return profile, in 2022 we re-
inforced our Latin American roots while
continuing to expand our geographical
exposure in key strategic markets.
For example, we finalized the ac-
quisition of OK Market, a chain of
small-format proximity stores in Chile.
The transaction added 120 stores to
FEMSA’s existing proximity business
footprint in this important market, to
reach a total of 269 locations where
our newly expanded scale will better
serve our Chilean consumers.
We also capitalized on the unique
opportunity to grow and develop our
proximity retail business outside of
Latin America – in a new continent –
by joining forces with Valora, one of
the leading foodvenience platforms
in Europe. Together, we will unite
our extensive experience, scale and
digitalization philosophies to accelerate
exciting new avenues of growth and
potential.
3 FEMSA Units consist of FEMSA BD Units and FEMSA B Units. Each FEMSA BD Unit is comprised of one Series B Share, two Series D-B Shares and two Series D-L
Shares. Each FEMSA B Unit is comprised of five Series B Shares. The number of FEMSA Units outstanding as of December 31, 2022, was 3,578,226,270, equivalent
to the total number of FEMSA Shares outstanding as of the same date, divided by 5.
Including leases.
4
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And these are the ways
we are going to achieve
them. Our HOWs.
Proactive Engagement
with our Audiences
We aim to facilitate open, clear,
proactive, transparent and tailored
dialogues with all our stakeholders,
using accessible tools and mediums
of engagement. This is essential to
understand internal and external
expectations and concerns, and, in
turn, strengthen our levels of credibility
and trust, more easily navigate
challenges, identify new opportunities
and ultimately drive continuous
improvement across our business.
We view this 2022 Integrated Annual
Report as a key example of that
philosophy and outreach approach. We
have many great stories to tell about how
our teams contribute daily to the creation
of social, environmental, and economic
value, and we are excited to share some
of them with you in this publication.
Rooted Sustainability
Sustainability is embedded in everything
we do at FEMSA, and we seek opportuni-
ties to engage in collaborative initiatives
that amplify our positive impact. As a
signatory of the UN Global Compact, we
support and adhere to their ten prin-
ciples to protect human rights, uphold
ethical labor practices, preserve the
environment and combat corruption.
Sustainability has become so important
to the way we do business that,
for the first time this year, we have
organized this Annual Report according
to the three pillars of our strategic
sustainability framework: Our People,
Our Community and Our Planet. As
you will see, we are working hard on
bold initiatives to put our people first,
create social value in our communities
and identify green solutions that
drive efficiencies and preserve the
environment. Complementing this work,
FEMSA Foundation is cultivating shared
prosperity by investing in opportunities
to support water security, the circular
economy, early childhood and the arts.
We also continued to advance our
leadership in sustainable finance in 2022.
Coca-Cola FEMSA became the first non-
financial corporation in the Americas
and the first company in the Coca-Cola
System to issue a social bond, facilitating
the financing of social projects. This
aligns with the environmental, social and
governance (ESG) transformation project
Coca-Cola FEMSA conducted during the
year to redefine their ambition, goals
and sustainability strategy to be at the
forefront of market, regulatory and
consumer trends. Their overarching
vision is to become a world leader in
sustainability, serve as an example of
ESG excellence in Latin America and
elevate ESG practices in the region and
the world.
Enhance our Talent & Culture
Our people are integral to our business
and their wellbeing is our highest
priority. Our organizational culture is
evolving, and we are finding new ways
of working together collaboratively.
We are prioritizing diversity, equity and
inclusion within our culture and hiring
practices, including promoting the labor
inclusion of minority groups and those
in vulnerable situations.
We are also empowering our people
with the right tools, practices, processes
and work experiences to support their
career development. In 2022, more
than 7 million cumulative hours of
continuous learning and training were
conducted on topics including human
rights, sustainability, health & safety
and culture & leadership and ethics
& compliance, among other areas of
technical knowledge. This investment
in our collaborators directly supports
our talent attraction, development and
succession strategy and sets us up for a
strong pipeline of future talent.
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This focused
business structure
will allow us to better
understand and serve
our clients and
consumers, who are
the focal point of
everything we do.
FEMSA Forward
As you can see, we are taking advantage
of the many opportunities during the
year to begin putting these six strategic
priorities into action as we continued
designing our long-range plan. At the
end of that process, our overarching
conclusion was that the best way to
continue creating value at FEMSA is
through a structure that focuses only on
the businesses that are core to us, where
we have built leading platforms, and have
proven capabilities, financial strength and
dynamic avenues for growth. Specifically:
Retail, with excellent long-term growth potential, comprising Proximity
(Americas and Europe), Fuel and Health. We see significant opportunities to
continue developing our already powerful retail platform across small formats.
Coca-Cola FEMSA, leveraging its leadership position, excellent execution
and outstanding financial strength, combined with significant operating and
strategic opportunities – all enhanced by the strategic partnership with
The Coca-Cola Company and its globally leading brand portfolio.
Digital, building a consumer-centric, value-added financial and digital
ecosystem that leverages our businesses’ capillarity and strong consumer
recognition, aiming to become the ally to over 30 million consumers. Our digital
platform will play a key role in leveraging and connecting our core business
units to catalyze the evolution of multichannel retail.
This focused business structure will
allow us to better understand and
serve our clients and consumers, who
are the focal point of everything we do.
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We hope you enjoy
reading more about our
progress and ongoing
transformations in this
year’s Integrated
Annual Report.
Leading the Way
As we reflect on the success of 2022
and look forward to the future of FEMSA,
we would like to thank all our more
than 354,000 employees around the
world for their hard work. We would
also like to thank our entire leadership
team for their dedication to upholding
our values and executing on our vision,
particularly John Santa Maria Otazua
and Alfonso Garza Garza following the
announcement of their retirements as
of the end of 2022. With over 27 years
in various leadership roles at Coca-Cola
FEMSA, John has ushered the company
through a remarkable evolution into the
largest and most sophisticated bottler
in the global Coca-Cola System. Alfonso
has also had a highly successful career
with FEMSA over the last 37 years and
most recently has been instrumental in
the growth of our refrigeration, logistics
and distribution operations, including the
success of the Envoy Solutions platform.
As of January 1, 2023, we welcomed Ian
Craig and Constantino Spas Montesinos
to FEMSA’s senior leadership team in the
roles of CEO of Coca-Cola FEMSA and
CEO of FEMSA Strategic
Businesses, respectively. We know they
are well positioned to help carry
FEMSA Forward to achieve our ambi-
tious strategies for a successful shared
future – one that is proactively responsive
to the trends of the macroeconomy,
changing consumer preferences and
sustainable development imperatives.
To you, our shareholders and all our
stakeholders: thank you for standing
by our side through another successful
year of shared value creation. We are
proud to offer a product or service
close to you, wherever you are. We
are proud to do so in a sustainable
way, as a people-focused organization,
through open dialogue and clear
communication. We hope you enjoy
reading more about our progress and
ongoing transformations in this year’s
Integrated Annual Report – structured
for the first time through the lens of
sustainability – and we look forward to
your feedback.
By your side, always.
José Antonio Fernández Carbajal
Executive Chairman of the Board
Daniel Rodríguez Cofré
Chief Executive Officer
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He will always be
remembered at
FEMSA with great
affection, respect,
admiration
and deep gratitude.
In Memoriam
Don José Fernando Calderón Rojas
(1954 – 2022)
Don José Fernando Calderón Rojas was a member of
FEMSA’s Board of Directors since 1984 and served as an
extraordinary counselor, great friend and partner to us
for many decades. His family roots go back to the original
founding of FEMSA and he was the fourth generation to
contribute to our Company’s success over these many years.
With his guidance and many contributions, he made a
profound mark on FEMSA’s growth and evolution. He was
an exemplary businessman with a strong leadership vision
that he shared with multiple companies and associations
in addition to FEMSA. In the 1980s, he was a director
of Coca-Cola FEMSA and his wide legacy includes being
considered one of those responsible for the growth of
Coca-Cola FEMSA in the 1990s, during a time when many
important acquisitions were made.
He was also an altruistic and generous man who stood out
for his great commitment to his family, his community and
to the economic, cultural and educational progress of Nuevo
León and Mexico. He supported many causes, always in a
very discreet way. He will always be remembered at FEMSA
with great affection, respect, admiration, and deep gratitude.
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company overview & 2022 results
We operate our business through the following structure:
CORPORATE STRUCTURE
EQUITY STAKES AND BUSINESS UNITS
100%5
Retail
47.2%6
Coca-Cola
FEMSA
100%
Digital@FEMSA
100%
FEMSA
Strategic
Businesses
14.8%
HEINEKEN
Proximity Fuel
Health
Retail5
Coca-Cola FEMSA6
Digital@FEMSA
FEMSA Strategic Businesses
We also participate in other ancillary businesses, including
point-of-sale refrigeration, food processing equipment and
plastics solutions.
As of 2022, we also participated in the beer industry as a
shareholder of HEINEKEN, one of the world’s leading brewers
with operations in over
70 countries.7
US$ 34.5
billion total
revenues
2022
+23,500
OXXO Stores
in Latin
America8
Includes FEMSA Proximity (Americas and Europe), Fuel and Health.
5
6 Represents 56% of voting rights. Coca-Cola FEMSA equity stake
comprises 27.8% The Coca-Cola Company and 25.0% Public.
7 On February 16th, 2023, the Company sold a portion of its HEINEKEN
Investment in the total amount of EUR 3,200 million in an all cash
transaction. Following the completion of the sale, FEMSA’s economic
interest decreased from 14.76% to 8.13%. As a result, FEMSA-appointed
directors resigned from the HEINEKEN Boards, and the Company lost its
significant influence over this investment.
Includes Grupo Nós.
8
For more information, please see FEMSA’s
Form 20-F 2022.
~270 million
people served
by Coca-Cola
FEMSA
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our presence
United States
Mexico
Guatemala
Netherlands
Luxembourg
Switzerland
Germany
Austria
We have more than
354,000 employees
in 18 different countries,
across the globe
through our
Business Units at the
end of 2022.9
Nicaragua
Costa Rica
Panama
Ecuador
Peru
Chile
Colombia
Venezuela9
Brazil
Uruguay
Argentina
Retail*
Coca-Cola FEMSA
Digital@FEMSA
FEMSA Strategic Businesses
* Includes: FEMSA Proximity
(Americas and Europe),
Fuel and Health.
9 As of December 31, 2017, as a
non-consolidated operation, Venezuela is
reported as an investment in shares.
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financial highlights
Millions of pesos
Total revenues
Income from operations2
Operating margin
Consolidated net income
Controlling interest net income3
Controlling interest earnings per BD unit4
Controlling interest earnings per ADS5
EBITDA
EBITDA margin
Total assets
Total liabilities
Total equity
Capital expenditures
Total cash and cash equivalents6
Short-term debt
Long-term debt
Headcount7
TOTAL REVENUES
INCOME FROM OPERATIONS
Million
of dollars
20221
2022
2021
%
Change
2020
%
Change
34,531
673,202
556,261
3,048
59,416
51,993
21.0
14.3
492,966
41,503
12.8
25.3
8.8%
9.3%
34,743
37,678
23,909
28,495
6.7
66.8
8.0
79.6
1,784
1,228
0.3
3.4
8.4%
-7.8
-16.1
-16.3
-16.1
3,756
903.1
(1,930)
-1576.4
(0.5)
(5.4)
-1700.0
-1574.1
4,761
92,812
82,422
12.6
71,973
14.5
2.6%
Ps. 673,202
32.7%
5.1%
6.6%
3.8%
0.6%
Ps. 59,416
9.8%
11.1%
7.6%
1.5%
34.7%
EBITDA*
TOTAL ASSETS
13.8%
14.8%
14.6%
40,973
798,815
737,500
8.3 684,848
23,645
461,014
402,383
14.6 377,661
17,328
337,801
335,117
0.8 307,187
1,765
4,280
34,410
24,055
43.0
20,893
83,439
97,407
-14.3 107,624
941
18,341
4,640
295.3
8,801
8,894
173,400
185,945
-6.7 179,864
354,344
320,808
10.5 320,618
-4.4%
6.7%
8.2%
3.6%
1.3%
7.7
6.5
9.1
15.1
-9.5
-47.3
3.4
0.1
Ps. 92,812
46.3%
38.3%
29.4%
9.1%
6.9%
2.7%
Ps. 798,815
-7.6%
51.9%
39.6%
31.3%
16.2%
4.4%
1 U.S. dollar figures are converted from Mexican pesos using the noon-buying rate published by U.S. Federal Reserve Board, which was Ps. 19.4960 per
US$1.00 as of December 31, 2022.
2 Company’s key performance indicator.
3 Represent the net income that is assigned to the controlling shareholders of the entity.
4 “BD” units each of which represents one series “B” share, two series “D-B” shares and two series “D-L” shares. Data based on outstanding 2,161,177,770 BD
units and 1,417,048,500 B units.
5 American Depositary Shares, a U.S. dollar-denominated equity share of a foreing-based company available for purchase on an American stock exchange.
6 Cash consists of non-interest bearing bank deposits and cash equivalents consist principally of short-term bank deposits and fixed rate investments.
7 Includes headcount from Coca-Cola FEMSA, Proximity, Fuel and Health Division, and Other Businesses of FEMSA. Grupo Nós headcount not included,
as it is a non-consolidated joint-venture.
*EBITDA=EBIT+Depreciation+Amortizations.
EBITDA calculated under IFRS16 standards
Coca-Cola FEMSA
Proximity Americas
Proximity Europe
Fuel
FEMSA Health
Logistics and Distribution
Others
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headcount
MEXICO*
BRAZIL**
COLOMBIA
CHILE
635
45,946
9,133
252,250
20,561
175,975
9,695
5,143
37,566
22,820
27,871
1,437
11
1,166
7,205
9,035
13,141
11,964
CENTRAL AMERICA***
EUROPE****
ECUADOR
ARGENTINA
156
8,478
8,634
4,889
4,519
4,222
4,500
4,197
19
25
UNITED STATES
URUGUAY
3,996
158
3,838
1,686
PERU
588
5
583
FEMSA Proximity
FEMSA Health
Coca-Cola FEMSA
Digital@FEMSA
FEMSA Strategic Businesses
*
Total includes headquarters staff.
** Grupo Nós headcount not included,
as it is a non-consolidated joint-venture.
*** Central America includes Costa Rica,
Panama, Nicaragua and Guatemala.
**** Europe includes Germany (3,294),
Switzerland (1,498), Austria (71),
Netherlands (13) and Luxembourg (13).
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looking ahead: FEMSA Forward
During 2022, FEMSA carried
out a thorough strategic review
of our business platform, including
the bottom-up definition of
long-range plans for each business
unit, as well as the top-down
analysis of the optimal corporate
and capital structure, to ensure full
alignment between the Board and
management as to how to pursue
and maximize value creation.
Consistent with this vision, FEMSA
has determined that the best path to
maximize long-term value creation is by
focusing on its core business verticals
beginning in 2023, which have the
highest strategic relevance, growth
potential and financial and competitive
strength:
Retail, with excellent long-term
growth opportunities, comprised
of Proximity (Americas and Europe),
Fuel and Health.
Coca-Cola FEMSA, leveraging its
leading competitive position and
excellent execution, combined with
significant financial strength and
strategic opportunities.
Digital@FEMSA, building a powerful
value-added per financial and digital
ecosystem, while playing a key role
in leveraging the connection among
FEMSA’s core business units.
FEMSA
has determined
that the best
path to maximize
long-term value
creation is by
focusing on its
core business
verticals
beginning in
2023: Retail,
Coca-Cola FEMSA
and Digital@
FEMSA.
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Retail
We apply our small-format retail
expertise to develop winning,
high-growth value propositions in
Latin America and Europe. Our Retail
business vertical is comprised of
FEMSA Proximity (Americas and
Europe), Fuel (OXXO GAS)
and FEMSA Health.
OXXO serves more than
12 million consumers
per day in Mexico alone.
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Proximity Americas includes OXXO,
the largest chain of small-format
stores in Latin America – serving more
than 12 million daily consumers per
day in Mexico alone – with the aim of
simplifying the lives of our customers
by responding to their on-the-go needs
with one-stop convenience.
Proximity Europe includes Valora,
a leading “foodvenience” platform
in Switzerland, Germany and other
European countries. Following our
transformational alliance with Valora in
July 2022, we are now accelerating the
economic development of our business
outside of Latin America.
Fuel includes the OXXO GAS brand
of retail service stations in Mexico
that sell gasoline and diesel to both
retail and Business-to-Business (B2B)
customers with the aim of providing
the customer with a superior and
distinctive service, supported by the
values of honesty and trust.
Health responds to the pharmacy,
health and wellness needs of our
communities through a large and
growing network, representing the third
largest pharmacy chain in Latin America
in terms of sales. Within Health, we
operate under the brands Cruz Verde,
Farmacias YZA, Moderna, Farmacón,
Fybeca, SanaSana and Maicao beauty
stores. We distribute and sell patented
and generic pharmaceutical drugs,
beauty products, medical supplies and
wellness and personal care products,
among other categories.
Our Reach in 2022: Points of Sale
OXXO
Mexico10
Brazil11
Colombia
Chile
Peru
Valora
Germany
Switzerland
Luxembourg
Netherlands
Austria
I
Y
T
I
M
X
O
R
P
L OXXO GAS
E
U
F
Mexico
Health
Ecuador
Colombia
Chile
Mexico
H
T
L
A
E
H
TOTAL Retail
21,500
1,468
231
269
75
Subtotal
23,543
1,430
1,184
72
43
37
Subtotal
2,766
568
903
712
905
1,575
4,095
30,972
Subtotal
10 Includes OXXO and other Proximity formats.
11 Through our joint-venture with Raízen, Grupo Nós, includes 217 OXXO
stores, 38 Shell Select locations in Brazil, and 1,213 Shell Select stores
operated by independent franchisees.
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OXXO’s
value is one
of one-stop
convenience
to simplify
the lives
of our
customers
Operational Highlights
OXXO nearly tripled its speed of
expansion in South America versus
the prior year with +100 store
openings in Colombia, bringing the
total to 231 stores in that country;
+40 store openings in Chile (including
integrating 120 stores through the
acquisition of OK Market, with a
total of 269 stores) and +25 store
openings in Peru with a total of 75
stores. We also accelerated the
growth of our Brazilian joint-venture
with Grupo Nós through the opening
of +317 company-owned and
operated stores as of year-end 2022,
with a total of 1,468 stores, bringing
+2,000 stores in OXXO LATAM
(including franchises under both
brands Shell Select and OXXO).
We worked to consolidate Valora
into FEMSA Proximity during the
second half of 2022, with the
transaction expected to significantly
help FEMSA innovate and remain
at the cutting edge of modern
convenience retail, considering
an increasingly mobile and digital
clientele in our customer-centric
ecosystem.
Follow us:
@Tiendas_OXXO
OXXO GAS expanded its “Complete
Liters Test” to 100% of its 568 stations
in 2022, through which customers
can request to examine a liter of
gasoline to confirm that it is complete.
Since 2021, we have carried out more
than 1.1 million tests for our clients,
thereby building trust by reiterating
our commitment to the best security
protocols and constant calibration of
our dispensaries.
FEMSA Health continued to see
strong growth in 2022, with the
opening of 434 net new stores; a
12% increase as compared to 2021.
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Financial Results Summary
OXXO GAS total revenues
increased 29.8% during 2022,
reflecting increased movility
across Mexico and the strong
growth of B2B business, which
now represents 20% of total sales,
serving more than 7,000 clients in
the states where we operate with
more than 70,000 units that fuel
at OXXO GAS.
Proximity Americas total revenues
grew 17.8% vs. 2021 and and its
operating income reached
Ps. 23.5 billion in 2022; representing
a 27.9% increase compared to 2021,
representing double-digit growth.
OXXO same-store-sales were up
14.3% for the year, reflecting strong
ticket and traffic growth.
Proximity Europe revenues
reached Ps. 9.8 billion during the
consolidated period of 202212
reflecting traffic and ticket recovery
driven by increased mobility.
OXXO same-store-sales
were up 14.3% for the
year, reflecting strong
ticket and traffic growth.
FEMSA Health total revenues
grew 2.4% against 2021, reflecting
a demanding comparison base
in Chile and strong growth in its
Mexico, Colombia and Ecuador
operations.
12 The consolidated period of 2022 includes 23 days of October, and the full months of November and December 2022.
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Coca-Cola FEMSA
As the largest Coca-Cola franchise
bottler in the world by sales volume,
Coca-Cola FEMSA produces, markets,
sells and distributes leading brands
of Coca-Cola trademark beverages in
nine Latin American countries.
We served approximately 270 million
people through 2.1 million points of
sale with a portfolio of more than 134
leading brands.
We operated with momentum in
2022, accelerating our digitalization
and cultural transformation while
making substantial progress towards
our key long-term strategic objectives
and our ambition of becoming the
world’s preferred and most sustainable
commercial platform. We continued to
leverage the strength of our Enhanced
Cooperation Framework with The
Coca-Cola Company, aligning ambitious
plans to grow our core business,
increase investments in the market,
open new revenue streams and
significantly advance the rollout of our
digital strategy.
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We are confident we are uniquely
positioned for growth by leveraging
our strengths, our positive momentum,
and focusing on the following six
strategic priorities as our guiding
principles: grow the core; become our
customer’s preferred omnichannel
commercial platform; de-bottleneck
our infrastructure and digitize the
enterprise; make a difference in ESG;
strengthen our customer-centric culture
and leveraging our strategic M&A
D2C: We continued to increase
traffic to “Coca-Cola en tu Hogar”
website and expand our direct-
to-consumer (D2C) home delivery
capabilities in Mexico, reaching
almost 600,000 households via
more than 1,650 routes (up from
approximately 1,200 routes in 2021).
Additionally, we are digitizing our
D2C home delivery capabilities,
allowing our home delivery team to
sell with their handheld device and
accept digital payments.
Operational Highlights
Multi-category: We are
We operate
56 bottling plants
and 249 distribution
centers13 in 9 markets
of Latin America.
Omnichannel B2B Platform,
Juntos+: We grew Juntos+, our
digital Business-to-Business (B2B)
omnichannel multi-category
commercial platform’s monthly
active customers to more than
800,000 in 2022. Digital sales
through the platform reached
US$ 1.2 billion in 2022 (up from
US$ 360 million in 2021), or
approximately 11% of total sales.
strengthening our multi-category
platform and alliances with
high-potential leading brands
across our territories. For example,
we successfully signed long-term
distribution agreements with spirits
leader Grupo Campari, and with
confectionary products leader,
Grupo Perfetti Van Melle, in Brazil.
Additionally, we are running a
series of pilot programs to gain new
insights across key territories.
We expect that these pilot programs
will allow us to obtain the necessary
learnings and insights to continue
advancing towards a potential
strategic alliance in the future.
For more information, please
see Coca-Cola FEMSA’s
Integrated Report 2022 and
Form 20-F 2022.
13 We have considered owned and third-party
distribution centers managed by us.
We are now
serving over
1.3 million
registered
clients,
reaching
more than
800 thousand
digital
monthly
active users,
on our B2B
platform
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Portfolio innovation: Our low- and
no-sugar categories remained
important growth drivers across
our territories as we leveraged a
consistent value proposition, with
Coca-Cola Zero Sugar sales
increasing 23% versus the previous
year. During the year, we introduced
limited edition, sequential releases
from Coca-Cola Creations,
The Coca-Cola Company’s innovation
platform, across key markets to
enhance consumer engagement.
These exciting new creations—
featuring gaming-inspired
pixel-flavored Coca-Cola Zero Sugar
Byte and the artist Marshmello’s
Limited Edition Coca-Cola—enabled
us to launch creative new products
and experiences successively across
physical and digital worlds, Notably,
catering to our consumers’
preferences, we took portfolio
innovation to the next level with the
expanded consumer-centric launch
of our locally developed formula of
Brisa Manzana (Colombian Apple)
sparkling water.
Affordability: Despite inflationary
pressures, we continued to provide
our consumers with unmatched
affordability in the “away from home”
and “at home” consumption occasions,
thanks to several market initiatives.
Also, our universal bottle remained an
important driver of affordability.
In Mexico, during the year, we
launched our 2.5-liter returnable PET
universal bottle across new cities. Now
covering nearly all our franchise
territory, the universal bottle or “botella
única” enables us to use the same
refillable bottle our core flavored
sparkling beverage and juice brands—
from Fanta and Sprite to certain Del
Valle brands. Importantly, the
expanded coverage of our refillable
universal bottle continued to yield
share of sales gains in the cities where
it was launched. This year in Colombia,
we significantly expanded the rollout
of our affordable universal bottle to
cover more than 60% of the country.
For more information about our portfolio,
please visit:
https://coca-colafemsa.com/en/about/
we-are-coca-cola-femsa/our-products/
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This transformational bottling
technology enables us to offer
affordable refillable PET
presentations not only of brand
Coca-Cola, but also of our flavored
sparkling and still beverage brands to
compete more effectively in the
market, enabling volume and share
of sale increases in the cities where it
was launched.
Sustainability: Read more
about our ongoing leadership in
sustainable finance and progress
against Sustainability Performance
Targets on page 134, and the
construction of our new PET
recycling plant on page 50.
Leadership transitions: Ian Craig
was appointed by the Board of
Directors as Chief Executive Officer
of Coca-Cola FEMSA as of January 1,
2023. Ian has been an outstanding
member of the FEMSA team for 28
years, with increasing responsibilities
at Coca-Cola FEMSA since 2003. Ian
was CEO of Coca-Cola FEMSA Brazil
since 2016, leading the company’s
digital transformation towards a
B2B platform. Constantino Spas
Montesinos, formerly Chief Financial
Officer of Coca-Cola FEMSA, was also
appointed Chief Executive Officer
of FEMSA Strategic Businesses as
of the same date. At the same time,
Gerardo Cruz Celaya was appointed
as CFO of Coca-Cola FEMSA as of
January 1, 2023.
Financial Results Summary
All categories posted accelerated
volume growth as compared with the
previous year. Despite the volatile
supply chain and raw material
environment, our gross profit and
EBITDA remained resilient. Our revenue
growth management and favorable raw
material hedging strategies substantially
mitigated margin pressures mostly from
higher PET and sweetener costs across
most of our territories.
As we navigated an uncertain infla-
tionary environment, our focus on
affordability and relentless point-of-sale
execution enabled us to deliver 8.6%
year-over-year volume growth—12.1%
ahead of our 2019-baseline year. For
the year, total revenues increased
16.4% to Ps. 226.7 billion. Operating
income improved 12.5% to Ps. 30.8
billion. Operating cash flow increased
10.7% to Ps. 43.0 billion.
Looking ahead, as we continue to see a
dynamic raw material and supply chain
environment, we expect to continue to
protect profitability through our disci-
plined raw material hedging strategies
and focus on driving expense efficiencies.
Learn more about:
Coca-Cola FEMSA
Sustainability-Linked Bond
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Digital@FEMSA
On January 1, 2022, we announced
the creation of the Digital@FEMSA
division to unlock our next wave of
value creation by leveraging digital
tools that better serve our customers.
We are building a value-added
ecosystem that better connects
consumers and businesses.
Specifically, this new business unit was
created to capture the full potential
offered by the digital landscape while
allowing for the focus, flexibility, acqui-
sition of new talent and new business
processes that will be required to meet
the speed of change and innovation of
the current business environment.
Digital@FEMSA aims to drive
prosperity among individuals,
businesses and communities through
digital and financial inclusion. To do
so, we are building a value-added
ecosystem that better serves and
connects consumers and businesses
through three main types of solutions:
loyalty, payments and convenience.
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Our current solutions include:
Loyalty: OXXO PREMIA aims to be the
largest loyalty program in Mexico. Currently,
it has 12.9 million active users14 and we are
working on enhancing the value proposition
by incorporating more allies.
Fintech to Consumers: Spin by OXXO15 is
our digital wallet that has 3.9 million active
users.16 In 2022, Spin by OXXO received
authorization to operate as a financial
technology institution by the Banking and
Securities Commission (CNBV) of Mexico.
During 2023, we expect to continue to deploy
new financial products to the market.
Digital Solutions for Businesses: through
the acquisition of Netpay17 we want to enhance
the value of Micro, Small and Medium-sized
Enterprises (MSMEs) served by FEMSA and
expand our Ecosystem.
12.9 million
OXXO PREMIA
active users and
3.9 million Spin
by OXXO active
users in Mexico
14 Active OXXO PREMIA users are those who have transacted at least once with OXXO PREMIA in the last 90 days.
15 Spin by OXXO operates through Compropago S.A. de C.V. I.F.P.E.
16 Active Spin by OXXO users are those with a balance or those who have transacted in the last 56 days.
17 The transaction is expected to close during the first quarter of 2023.
Learn more on our website:
www.spinbyoxxo.com.mx
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FEMSA Strategic
Businesses
FEMSA operates several strategic
businesses that are leaders in their
industries or sectors and provide solutions to
FEMSA’s core business segments and other
companies, amplifying our competitive advantage.
REACH IN THE UNITED STATES
+1.5 million orders fulfilled for +200,000
of our customers’ locations, representing
+600 million pounds delivered for the
hospitality, health care, entertainment,
education and government sectors.
Logistics & Distribution includes
logistics and transportation, as well
as specialized janitorial, cleaning and
sanitation product distribution.
Food Service Solutions includes
cooling and refrigeration systems and
food service solutions.
Logistics & Distribution is made up
of Envoy Solutions and Solistica –
through which we are able to serve
millions of ever-evolving customers in
a consistently efficient, effective and
differentiated manner.
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Envoy Solutions is a specialized
distributor and solution provider
serving the United States
through a family of the nation’s
best distributors and specialty
marketing solutions in facility
care, foodservice, packaging and
marketing execution. We lead in
two main product categories: facility
supplies distribution (through
which we distribute both janitorial
and sanitation products and food
service disposables) and packaging
solutions (through which we provide
packaging supplies and equipment,
as well as packaging equipment
maintenance).
Solistica is a leading third-party
logistics (3PL) solution provider for
Latin America, serving more than 4,000
customers in three principal regions:
Mexico, Brazil and Central America.
We lead in two primary areas of
expertise: transportation (through
which we offer full truckload, less
than truckload and dedicated fleet
services), and warehouse operations
management for diverse industries
such as human health, animal health
& nutrition, consumption, retail and
technology, among others.
Other Businesses
FEMSA Strategic Businesses also includes
AlPunto, a group of companies focused
on providing solutions in food service
equipment, commercial refrigeration,
materials handling and integral services
at the point of sale. Within AlPunto, we
have Imbera, our refrigeration busi-
ness that manufactures commercial
refrigerators for our clients in the soft
drink, beer and food industries, includ-
ing for Coca-Cola FEMSA; Torrey and
the Cooking Depot, our food service
solutions businesses that manufacture
operations for food processing, storage
and weighing equipment; and Plásticos
Técnicos Mexicanos (PTM), which de-
signs and manufactures plastic transfor-
mation projects for materials handling,
food, beverages and automotive.
Operational Highlights
Envoy Solutions reached an
agreement to acquire Sigma Supply of
North America Inc., an independent
specialized distribution company
based in Arkansas, expanding our
footprint and reflecting another
important step in our strategic path
to build a leading national distribution
platform in the United States.
The move has expanded Envoy’s
distribution network to include almost
70 facilities covering 34 states.
Solistica inaugurated a new
warehouse in Monterrey,
Nuevo León, Mexico with a state-
of-the-art technological operation
system that will strengthen the
logistics network of its clients in the
northern states and the U.S. border,
a strategic location to reduce costs
and increase efficiencies.
In cooperation with a key customer,
Solistica inaugurated a new
distribution center in Extrema, Minas
Gerais, Brazil, strategically located
near economically important regions
in the country that will bring effective
gains and cost reductions. The unit is
expected to generate more than 200
new direct and indirect jobs in the
region and move a volume of 14,000
tonnes of products.
Financial Results Summary
Logistics and Distribution had a strong
year driven by a standout performance
at Envoy Solutions, showing strong
top-line growth and stable margins.
Logistics and Distribution total
revenues increased 49.8% during
2022 reflecting the strong inorganic
growth of Envoy Solutions.
On an organic basis, total revenues
for this segment increased 12.8%,
reflecting effective cross-selling
innitiatives at Envoy Solutions
coupled with positive demand
dynamics at our Solistica
operations.
REACH IN LATIN AMERICA
+1.9 million trips, reaching +160,000
of our customers’ locations weekly,
representing +7.7 billion pounds
transported on behalf of our
customers in the pharmaceuticals,
automotive, technology and consumer
goods industries.
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our sustainability strategy
For FEMSA, sustainability is the ability to create the
social, environmental and economic conditions to
operate efficiently today while growing in harmony
with the environment and society tomorrow.
Our actions are guided by the highest
standards of our ethics and values, and
we generate positive impacts across
three guiding axes of our sustainability
strategy: Our People, Our Community
and Our Planet These pillars are
integrated directly into our corporate
strategy and all that we do.
Additionally, incorporating the
Governance vector into our
sustainability model since 2021 has
been vital to ensuring the responsible
conduct and operation of the business,
achieving long-term value generation,
aligning and promoting both economic
and social performance, as well as
ensuring transparency and building
credibility with all interest groups.
We seek to meaningfully contribute to
the achievement of global objectives
that transcend our operations. Our
sustainability strategy and accompanying
2030 corporate goals are aligned with the
United Nations Sustainable Development
Goals (UN SDGs) and in support of the
principles of the UN Global Compact
(UNGC). Our approach also integrates
the priorities of FEMSA Foundation while
leveraging its existing strengths and deep
community network.
Our sustainability strategy is ratified at
the highest levels of our organization.
Our Sustainability, Inclusion & Diversity
Committee, co-led by the Chairman of
the Board and the Corporate Director,
drives our agenda and each of the lead-
ers of our business units has responsi-
bility for integrating sustainability into
their operations.
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Materiality
FEMSA’s material environmental,
social and governance (ESG) topics
– that is, the most important risks,
opportunities and issues in the
eyes of the Company’s internal and
external stakeholders – were identified
through an exhaustive analysis taking
into account the considerations of
each of our businesses within the
wider global context. We began a full
materiality assessment in 2020 that
was completed in 2021. The exercise
entailed a series of steps to identify,
prioritize and validate key stakeholder
concerns relevant for FEMSA and each
business unit.
Identification: We began
the process with research to
understand global trends, including
benchmarking best practices from
among 17 peer companies. With
our internal stakeholders, we
conducted an analysis of business
strategy, operational processes
and legal requirements, as well
as completed a risk assessment
using our internal risk management
framework. External engagement
opportunities included dialogues
about the sustainability concerns
of a representative selection of 24
stakeholders.
We have also conducted the following
business-unit level materiality
assessments: Proximity Americas
(OXXO in Mexico, Chile, Colombia
and Peru as well as OXXO GAS),
FEMSA Health, Coca-Cola FEMSA and
FEMSA Strategic Businesses (Solistica;
Food Service: Torrey and Cooking
Depot; Imbera; and PTM). Looking
ahead, in alignment with our internal
governance and sustainability strategy,
we plan to conduct a comprehensive
sustainability materiality assessment
every four to five years.
Prioritization: The next phase of
the materiality assessment yielded a
set of results that has now become
FEMSA’s Strategic Sustainability
Framework: three strategic pillars,
made up of nine priority topics and
29 focus areas – all stemming from
one foundational commitment to
strong governance practices, guided
by our ethics and values.
Validation: Finally, we socialized the
materiality outcomes, final strategy
and related roadmap with corporate
and business unit directors, external
sustainability experts and our own
collaborators to ensure agreement
and buy-in. These results were
presented to and approved by our
senior management team and Board
of Directors, the highest governance
body responsible for review and
approval.
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FEMSA Priority Topics
Although each of our businesses is
exposed to different sustainability
issues because they operate in
different industries and have different
stakeholder groups, there are overlaps
in the materiality of multiple issues.
Built on the foundation of FEMSA’s
collective commitment to strong
corporate governance, we have
identified and prioritized 29 focus areas,
organized under nine priority topics,
across the three pillars, which integrate
the perspectives of all stakeholders
and represents the most important
commonalities across our different
businesses.
FEMSA’s Strategic Sustainability Framework: Priority Topics & Focus Areas
Our People
Our Community
Our Planet
Human and Labor Rights
Community Wellbeing
1. Ensuring Adequate Compensation
2. Providing Decent, Optimal and Safe
Working Conditions
3. Prohibiting Child and Forced Labor
4. Respectful and Collaborative Work
Environments
12. Supporting Healthy Lifestyles
13. Contributing to Safe Surroundings
14. Clean Communities
15. Engaging Local Communities
Climate Action
20. CO2e Emissions Reduction
21. Renewable Energy Use
22. Sustainable Mobility
23. Sustainable Products and Services
Diversity, Equity and Inclusion
Economic Development
Water Management
5. Fostering Inclusive Work Environments
6. Encouraging Diversity
7. Promoting Gender Equality
Integral Wellbeing
8. Promoting a Savings Culture and
Financial Education
9. Protecting Physical, Mental and
Emotional Health
10. Career Development and Continuous
Learning
11. Promoting Values and Citizenship
16. Economic, Financial, and
Digital Inclusion
17. SME Development and Local
Procurement
18. Encouraging Entrepreneurship
Sustainable Sourcing
19. Sustainable Sourcing
24. Optimizing Water Efficiency
25. Contributing to Water Accessibility,
Sanitation and Hygiene (WASH)
26. Contributing to Water Security
Circular Economy
27. Reducing and Eliminating
Operational Waste
28. Sustainable Packaging
29. Product and Service Circularity
Corporate Responsibility
Ethical and Socially Responsible Behavior
Fiduciary Responsibility
Governance
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Goals & Targets
Following our full materiality assessment in 2020, we released our first set of ambitious corporate sustainability goals in 2021.
During 2022, we completed a process to further define the scope for each of our public corporate goals, including identifying
quantifiable key performance indicators to help us track our progress against goals.
Priority Topic
2030 Goal
2022 status
2021 status
Baseline
Human and
Labor Rights
Workplace survey rating in the top 10 against benchmark
of high-performing companies (according to Mercer Sirota
Employee Engagement Survey)
87.0% on
Organizational
Climate
Diagnostic
88.0% on
Organizational
Climate
Diagnostic
89.0% (benchmark
score of high-performing
companies on
Organizational Climate
Diagnostic)
2030 Corporate Goals
Integral Wellbeing
8.7 million hours of annual training for collaborators
+7.0 million
+10.8 million
(2021)
Diversity Equity
and Inclusion
To have a 20 percentage point increase (or to reach 40%)
of women in executive positions
27.0%
24.0%
20.0% (2020)
Community Wellbeing
20.0 million beneficiaries of our Community Wellbeing
initiatives
3.7 million
2.9 million
Sustainable Sourcing
90.0% of procurement purchases from local suppliers in all
business units
67.0%
Climate Action
85.0% renewable energy use across all our operations
58.0%
Water Management
Achieve a neutral water balance in all our operations 81.0%
Circular Economy
Zero operational waste to landfill
68.7%
64.0%
60.9%
81.0%
53.0%
(2021)
(2021)
22.0% (2017)
(2021)
52.0% (2019)
r
u
O
e
l
p
o
e
P
r
u
O
y
t
i
n
u
m
m
o
C
r
u
O
t
e
n
a
l
P
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Sustainability Performance Targets
FEMSA Sustainability-Linked Bond Update
In 2021, FEMSA announced the placement of Euro-denominated sustainability linked
notes in the international capital markets. In connection with the Notes, we adopted
and published our Sustainability Linked Bond Framework, which was prepared
in accordance with the Sustainability-Linked Bond Principles 2020 (“SLBP”), as
administered by the International Capital Market Association. The Framework includes
certain SLBP-aligned Sustainability Performance Targets (SPTs) for 2030 in support
of FEMSA’s overall sustainability strategy priorities, specifically as they relate to the
circular economy and renewable energy:
SPT 1: Zero Operational Waste to Landfill: Increase the percentage of waste
diverted from landfills to 65% by 2025 and 100% by 2030.
SPT 2: Renewable Energy: Increase the annual sourcing of renewable electricity
to 65% by 2025 and 85% by 2030.
Per the terms of the Notes, if such targets are not satisfied by certain dates, as verified
by an accredited external party, there will be an interest rate step up of 25 basis
points. Our 2022 progress toward these SPTs is summarized below.
FEMSA SPT Performance
KPI
2017
2019
2020
2021
2022
SPT 2025
SPT 2030
Percentage of total
operational waste diverted
from landfills (measured as
tonnes of waste recycled
or reused/tonnes of total
operational waste)
Percentage of total electricity
consumption coming from
renewable sources
N/A
22.0% or
573,861
MWh
(baseline)
52.0% or
134,426
tonnes
(baseline)
53.0% or
138,993
tonnes
53.0% or
152,391
tonnes
68.7% or
192,949
tonnes
65.0%
100.0%
48.0% or
1,327,714
MWh
60.0% or
1,618,813
MWh
60.9% or
1,672,711
MWh
58.0% or
1,738,633
MWh
65.0%
85.0%
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Coca-Cola FEMSA Sustainability-Linked Bond Update
Also in 2021, Coca-Cola FEMSA issued the first sustainability-linked bonds in the Mexican
market, as described in our SLBP-aligned Sustainability Linked Bonds Framework.
As part of this arrangement, we commit to achieve a water use ratio (WUR) of 1.26 liters
by 2026. Specifically, the KPI measures the total volume of water consumed across all
bottling plants expressed per the total volume of beverages produced.18
If this indicator is not met by the specified dates (see table below), as verified by an ac-
credited external party, the interest rate of the bonds will increase by 25 basis points.
Our 2022 progress toward the SPT is summarized in the table below.
Coca-Cola FEMSA SPT Performance
KPI
2020
2021
2022
SPT 2026
Water use ratio (WUR) as the water usage to a liter of beverage
production (L/L)
1.49
(baseline)
1.47
1.4619
1.26
18 For example, a WUR of 1.20 indicates that, for every liter of beverage produced, an additional 0.2 liters
of water is used to produce it. The measured water is from any source, including municipal water, water
wells, surface water or tank water. The description of water sources is aligned with the GRI Standard on
reporting total water usage.
19 For purposes of these metrics, Coca-Cola FEMSA considered owned and third-party distribution centers
managed by KOF. Plants acquired during the year 2022 will report on these metrics in the 2023
Integrated Report.
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2022 Sustainable Finance Updates
Building on the momentum of the sustainability linked bonds announced by FEMSA
and Coca-Cola FEMSA in 2021, we continued our leadership in sustainable finance
during 2022 with two additional announcements.
First, in October 2022, Coca-Cola FEMSA announced the successful pricing of social
and sustainability bonds in the Mexican market for a total of Ps. 6,000.0 million,
becoming the first non-financial corporation in the Americas and the first company
in the Coca-Cola system (https://www.coca-colacompany.com/company/coca-
cola-system) to issue social bonds that facilitate the financing of social projects to
investors. The bonds were priced at a fixed rate of 9.95% (Mbono+0.30%) for an
amount of Ps. 5,500.0 million due in seven years; and Ps. 500.0 million at a variable
rate of TIIE + 0.05% due in four years.
The net proceeds of these bonds will be used to finance social and sustainability
projects focused on the development and local needs of the communities in which
the Company has a presence, such as support programs that provide entrepreneurial
and self-employment skills, financial solutions that support store owners and
investments in sustainable community development, including water replenishment
projects and water access in vulnerable communities.
Secondly, in November, FEMSA announced the placement of Mexican
Peso-denominated sustainability linked bonds in the Mexican market for a total
of Ps. 9,273,843,400.0 The issued bonds were purchased by 33 institutional
investors and the issuance was oversubscribed 1.9x times. These Bonds are linked
to FEMSA’s SLBP-aligned Sustainability Linked Bond Framework and include the
same SPTs related to the circular economy and renewable energy as the bond
launched in 2021 (see page 134). Again, if these targets are not satisfied on the
dates specified, and as verified by an accredited third party, there will be an
interest rate step-up of 25 basis points.
Learn more in: Coca-Cola FEMSA’s 2022
Integrated Annual Report.
Green Bond Allocation
In line with FEMSA’s sustainable finance strategy,
Coca-Cola FEMSA issued its first green bond in
the international capital markets in 2020. As of
December 31, 2022, Coca-Cola FEMSA had allocated
US$ 664.87 million of green bond net proceeds (or
approximately 94% of the total) to projects supporting
climate action, water stewardship and the circular
economy.
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Select Sustainability Awards & Recognitions
The following is a partial list of select
third-party validations of FEMSA’s
sustainability efforts that we were
honored to receive in 2022 from across
multiple platforms.20
FEMSA named to the Dow Jones
Sustainability Mercado Integrado
Latinoamericano (MILA) Pacific
Alliance Index for the sixth
consecutive year.
Coca-Cola FEMSA named to the
Dow Jones Sustainability MILA
Pacific Alliance Index for the sixth
consecutive year; to the Dow Jones
Emerging Markets Index for the
tenth consecutive year; and included
in the S&P Global Sustainability
Yearbook 2023 for the third
consecutive year.
Coca-Cola FEMSA recognized for
the fourth consecutive year as one
of the 2022 Best LGBTQ+ Places
to Work by the Human Rights
Campaign Foundation and HRC
Equidad MX: Global Workplace
Equality Program.
FEMSA and Coca-Cola FEMSA named
for the second and fifth consecutive
year, respectively, to the 2022
Bloomberg Gender Equality Index
for the development of policies
that promote gender parity and for
transparency in gender-related data
disclosures.
FEMSA and Coca-Cola FEMSA both
named to the FTSE4Good Emerging
Latin America Index for the seventh
consecutive year.
FEMSA and Coca-Cola FEMSA named
to the S&P/BMV Total Mexico ESG
Index for the second consecutive
year since its creation in 2021.
FEMSA achieved first place in the
Conglomerates category of the
Merco Empresas y Líderes México
ranking for best reputation.
The Mexican Center for
Philanthropy, A.C. (Cemefi) and
the Alliance for Corporate Social
Responsibility (AliaRSE) announced
the following companies that
again met the standards to obtain
the ESR® (Empresa Socialmente
Responsable, or Socially Responsible
Company) Distinction in 2022:
FEMSA, 16th year
OXXO, 18th year
OXXO GAS, 3rd year
Farmacias YZA, 3rd year
GPF Corporation (Fybeca), 1st year
Coca-Cola FEMSA, 17th year
Coca-Cola FEMSA
Solistica, 16th year
FEMSA maintained its MSCI A rating
Imbera, 17th year
for the third consecutive year.
PTM, 8th year
20 This selection does not include all the recognitions we were pleased to receive during the year at the
business-unit level as well.
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our people
At FEMSA we believe it is the right of all people to
perform a job without discrimination, to receive fair
remuneration and to preserve their human dignity
through social protections.
Ps. 4,100.0
million
invested in
Our People
pillar
We are committed to the
comprehensive development of our
more than 354,000 collaborators,
generating respectful, inclusive and
collaborative work environments for our
talent to grow and thrive.
We provide dignified working conditions
that constitute an essential support for
the wellbeing of our people. Our efforts
are aligned with the UN SDGs and cover
three priority topics: Human & Labor
Rights, Diversity, Equity and Inclusion
and Integral Wellbeing.
Sustainability Highlights 2022
+1,500 refugees and
migrants hired
6,700 senior or disabled
people employed
2nd consecutive year
on the Bloomberg Gender-Equality
Index
27.0% of women in executive
positions and 41% of
the total workforce
+7.0 million cumulative
hours of employee training
(20 hours per employee)
87.0% on FEMSA’s
Organizational Climate Diagnostic
+736K corporate volunteering
hours for +2.6K projects by +100K
employees
For detailed 2022 data related to Our People,
please see Key ESG Data in the Appendix.
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With the objective of creating safe
workspaces and healthy lifestyles, all
FEMSA Business Units have Industrial
Safety and Occupational Health
management systems in accordance
with their activities and line of business,
complying with FEMSA Corporate Policies
and the legal framework of the countries
where we operate. Given that the health
and safety risks of each business unit are
unique, we have certified professionals
in charge of the Occupational Health and
Safety Management Systems at each
business unit.
Human & Labor Rights
In line with our values and identity,
we promote adequate working
conditions and compensation for our
collaborators, and we ensure that
we have the necessary facilities and
infrastructure for our team members
to work optimally and safely. We
recognize that Human and Labor
rights are the set of prerogatives
based on human dignity, the effective
realization of which is essential for the
integral development of the person.
FEMSA’s Human and Labor Rights
Policy outlines our expectations of
our employees, suppliers and other
stakeholders.
Providing Decent, Optimal & Safe
Working Conditions
Nothing is more important than the
safety of our people. We have the
necessary facilities and infrastructure
for our team members to work
optimally and safely. We also maintain
the right protocols, processes
and regular training to prevent
occupational accident risks in our
workplace. We also conduct labor risk
assessments that consider the views
of our collaborators and leadership
teams, including issues related to
human rights.
Prohibiting Child & Forced Labor
As outlined in our Human and
Labor Rights Policy, we support the
elimination of child labor and comply
with the relevant local legislation on the
employment of minors. We prohibit any
employment relationship that is not
voluntarily agreed upon and reject any
form of unpaid work, servitude, slavery
or mandatory retention of documents
as a condition of employment. Through
our Supplier Guiding Principles, we
share the minimum expectations that
we require of our suppliers to manage
key areas of Human and Labor Rights.
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Respectful & Collaborative Work
Environments
We strive to create respectful and
collaborative work environments
that promote the commitment and
motivation of our collaborators,
and we keep open communication
channels on a permanent basis.
Our corporate goal is to have a
workplace survey rating in the top
10 against benchmarks of high-
performing companies, or those with
at least a score of 89% on the Mercer
Sirota Employee Engagement Survey.
As of 2022, we scored 87% on the
Mercer Employee Engagement
Survey, after achieving a 70%
response rate among those eligible
employees invited to participate
(representative from all business
units and 14 countries).
Preventing Child Labor in
CAFFENIO’s Supply Chain
FEMSA has zero tolerance for child
labor, including within the supply
chain of our popular andatti coffee,
the Mexican grown brand from
CAFFENIO exclusively offered at
OXXO stores and online.
Unfortunately, child labor remains a challenge in the
wider coffee sector around the world, where workers
in some coffee-growing countries bring their children
to help with the intensive manual work.
CAFFENIO has found that the native communities
differentiate formative work from child labor since
the Mexican tradition is to grow coffee as a family.
Approximately 95% of the coffee producers that
work with CAFFENIO are smallholders who do not
have hired labor. For the largest producers, who
need to hire personnel, training is carried out in
accordance with the Guiding Principles framework
that promotes human, labor, environmental and
ethical rights.
In 2018, CAFFENIO launched Formando a los
Cafeticultores del Mañana (“Training the Coffee
Growers of Tomorrow”) to reach children living in
coffee-producing communities in the region of the
High Mountains in Veracruz. The program aims to
promote children’s pride for being part of the local
coffee and agricultural sector and its importance to
the country’s economy through art, games and short
video stories.
CAFFENIO also promotes children rights and civic
values in elementary schools. In four of the participant
schools, CAFFENIO has developed small school farms.
As of 2022, the project is running in 29 communities
benefiting more than 1,100 students. One major
activity during the year was the short stories contest,
“Cosechando Historias” (Harvesting Stories), that
achieved the participation of 151 students from
1st grade up to the College level, in five categories.
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Diversity, Equity and Inclusion
At FEMSA, we recognize and celebrate
the uniqueness of all people, regardless
of gender, religion, nationality, sexual
orientation, physical condition, or age.
Our focus on diversity, equity and
inclusion (DEI) extends across the
organization, creating exponential value
for our company and our communities.
This includes non-discrimination in
our employee recruitment processes,
offering equal opportunities in our
professional development tracks, and
promoting multiculturalism among our
strategic leadership teams.
FEMSA’s Head of DEI leads our efforts
in these areas and works closely with
each of FEMSA’s business units to
help them implement their own DEI
strategies and amplify positive impacts
across our organization in unique
ways. For example, in 2022 OXXO
Chile obtained the Labor Inclusion
Manager certification, which promotes
equal opportunities for diverse
employee groups to grow in their work
environments, such as incorporating
facility upgrades to accommodate
people with disabilities.
To strengthen our efforts, in 2022
FEMSA defined and approved a DEI
specific internal regulation, which
outlines FEMSA’s inclusivity expectations
and helps guide all our business units
in maximizing inclusive behaviors and
defining appropriate countermeasures
in cases of any uncertainty or
non-compliance.
Fostering Inclusive Work
Environments & Encouraging
Diversity
Across our business units, we strive
to offer inclusive work environments
in which all people have equal
access to professional development
opportunities and the space to
contribute value from their individual
characteristics and backgrounds.
For example, the Proximity Division
promotes the labor inclusion
of minority groups and those in
vulnerable situations. As of 2022,
OXXO employed more than 2,530 older
adults, and more than 860 people with
disabilities.
OXXO’s longstanding strategy to
inclusively support diverse employee
groups includes Directed Labor Training
Centers, or special labor inclusion
Coca-Cola FEMSA
was recognized
for its best practices
of inclusion to LGBTQ+
people in Mexico for the
fourth year in a row.
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“We are proud of what we have
been able to achieve in Mexico
in supporting the employability
of migrants and refugees, but we
must continue to work to overcome
challenges, including driving greater
societal awareness and acceptance
while facilitating mechanisms for
financial inclusion. FEMSA has a
responsibility to lead in these areas
and we are setting a path for our
partners, neighbors and other
companies to join with us in finding
solutions that inspire hope while
reducing discrimination and poverty.”
Anabel Olivas,
Leader of Diversity, equity and
inclusion at FEMSA
hired more than 1,492 people in a
refugee or migrant situation from
surrounding countries, including
Honduras, Haiti, Cuba, El Salvador,
Guatemala, Venezuela, Nicaragua,
Ecuador, Colombia and Uruguay.
programs that help contracted people
develop specific skills to be incorporated
into active work, creating more equal
employment opportunities both
inside and outside the Company.
In collaboration with civil organizations,
public agencies and universities, OXXO’s
Training Centers for Older Adults, for
example, offer classroom-style
development programs that provide the
tools and knowledge for adults over the
age of 60 in vulnerable situations to
remain active in the working world.
Building skills and confidence in the areas
of finance, customer service,
administration or computing empower
participants to successfully work in OXXO
or in another company. To date, more
than 6,000 adults between the ages of
60 and 70 years old have benefited from
our Training Centers for Older Adults.
In 2019, OXXO also began implementing
a refugee inclusion program in
Monterrey, Mexico in collaboration
with the UN Refugee Agency (UNHCR)
and Tent Partnership for Refugees, a
global non-profit coalition of more than
140 multinational companies working
toward the economic integration of
refugees by supporting dignified and
formal employment opportunities.
In Mexico, UNHCR seeks to relocate
20,000 refugees and asylum seekers
from southern areas every year, and
in Nuevo León alone, more than 9,300
migrants have applied for refugee
status in the last three years. During
that time, the Proximity Division has
2022 AGE DIVERSITY
16%
1%
25%
Employees
58%
18–29 years
30–50 years
51–59 years
Over 60 years
Learn more about FEMSA’s financial
inclusion leadership efforts on page 53.
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Cruz Verde in
Colombia received the
EQUIPARES Labor Equity
Seal, a certification
program developed
by the Colombia
Ministry of Labor and
the UN Development
Programme, in
recognition of effective
actions taken to close
gender gaps.
EXECUTIVE POSITIONS
Women
Men
2022 %
2021 %
27
73
24
76
2022 GENDER DIVERSITY
Solistica’s First Female CEO
41%
Employees
59%
In line with Solistica’s vision of becoming the preferred
third-party logistics (3PL) solutions partner in Latin America,
and FEMSA’s commitment to increasing women in
executive positions, Jessica Ponce de León
Men
Women
Promoting Gender Equality
We promote equal access and
opportunities for men and women
through various programs and training
in our companies. Across all FEMSA
businesses, women make up
approximately 41% of our total
workforce and 27% of executive
positions. Our corporate goal is to
reach 40% women in executive
positions by 2030, which would
represent a 20 percentage point
increase from our 2020 baseline.
2022 marked the second consecutive
year that FEMSA was included in the
Bloomberg Gender Equality Index.
Coca-Cola FEMSA was also included for
the fifth consecutive year, maintaining
its link with UN Women.
became the first female CEO of Solistica as
of January 1, 2022. In an industry traditionally
dominated by men, Jessica has a strong
background in logistics and a track record of
high achievement across various industries in
the consumer and aviation sectors.
Given the ongoing evolution of the logistics
business and the current operating environment,
one of her priorities as incoming CEO was to
undertake a comprehensive strategy review and
ESG materiality assessment to understand the
most important topics for Solistica’s business
and stakeholders. The results aligned closely
with the priorities of FEMSA’s three pillars (Our
People, Our Community, Our Planet), including
an emphasis on climate change, diversity, equity
and inclusion and talent development. The
analysis also identified strategic topics specific
to Solistica, including service quality, innovation
& technology and data privacy. These insights
directly informed a refresh of Solistica’s business
strategy, including short and long-term goals,
key actions and new collaboration opportunities
across our value chain, particularly with suppliers
and customers. As a next step, Solistica will be
defining new key performance indicators and
baselines to measure and track actions, results
and impact.
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“At Solistica, I am proud to lead a team of more
than 22,000 collaborators, for whom we maintain
an environment of fairness and equality, offering
opportunities for all people based on ability
and regardless of gender. The diverse talent and
creativity of our people is more important than
ever, as the pandemic has redefined our logistics
processes and the last mile, showing us that
distribution networks are evolving and online sales
will continue to soar. Our sustainable business
strategy – focused on technology, operational
efficiency and commercial management – keeps us
nimble in the face of change, allowing us to keep
customers at the center of all we do.”
Jessica Ponce de León,
Solistica CEO
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Integral Wellbeing
We promote and encourage the quality of life and wellbeing of collaborators and
their families through a culture of participation and co-responsibility. In 2022, we
reimagined and redefined what we mean by ‘Integral Wellbeing’ at FEMSA, evolving
it from a simple social development model to a comprehensive framework that
supports the wellbeing of our people across five dimensions:
Healthy body: We develop healthy habits that contribute to good physical
fitness, prevention and reduction of diseases.
As next steps in 2023 and beyond, we will
implement a series of global strategies
and actions to embed this model into
the culture of FEMSA and our business
units, including wellness trainings, the
launching of new formative roadmaps,
tools and accelerators, and the tracking
of key indicators to understand our reach
and impact, as well as to identify areas for
continuous improvement.
Work life: We promote excellence at work within a positive, inclusive,
constructive, healthy and safe environment.
Promoting a Savings Culture &
Financial Education
We strive to generate
comprehensive
wellbeing in five
integral areas in the
lives of our employees,
their families and the
communities where we
operate.
Financial wellbeing: We promote financial education to generate a savings
culture that protects and builds personal and family wealth.
Social connections: We facilitate the development of significant interpersonal
relationships that promote family integration and among collaborators, as
well as citizen participation to improve the community and the environment.
Psychological wellbeing: We promote the psychological wellbeing of
employees so that they can experience a satisfying and purposeful life.
OXXO CLUB is a digital store – exclusively available
to our more than 175,000 employees from
Proximity, Digital@FEMSA and FEMSA Servicios -
which offers affordably priced products and services
with attractive discounts. From office and kitchen
supplies to electronics, clothes and more, we are
able to leverage our network of supplier
relationships to access special pricing, which
translates to cost savings and economic benefits
that we can pass on to our eligible employees.
We foster a savings culture in the orga-
nization that promotes the building and
protection of our team members’ and
their relatives’ personal assets. For exam-
ple, through Sociedad Cuauhtémoc y
Famosa (SCyF) in Monterrey, Nuevo León,
Mexico, we promote comprehensive
development programs for our collab-
orators that include food, medical care,
recreation and financial services, which
allows us to foster a culture of work and
savings to support family stability. SCyF
has been in operation for more than 100
years and continues to grow each year.
Similarly, OXXO Colombia offers a
program that promotes saving habits
and proper financial management.
This program positively impacts our
employees and their families’ wellbeing
by helping them to improve their financial
education knowledge and tools to
enhance their possibilities to acquire and
or improve their own home.
Protecting Physical, Mental &
Emotional Health
At FEMSA, human capital is our greatest
asset and we put the safety and integrity
of our employees above any economic
and operational considerations. We
create wellness and quality of life
programs, processes and facilities
that ensure healthy and safe work
environments while fostering a culture
of preventative self-care for balanced
lifestyles. This includes creative ways to
reduce and prevent physical, mental
and emotional illnesses, as well as
arranging access to appropriate health
services and development support.
For example, FEMSA Health promotes
its wellness program, VIVE 360, to help
collaborators prioritize the important
balance between their personal, family
and work lives. A series of people-first
policies, talent mapping agendas,
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work-life balance programs, attractive
benefits and culture building activities
across five dimensions of wellbeing are
designed to protect and build up our
collaborators. From flexible working
hours, lines of credit and volunteering
opportunities to career development
tools and special medical benefits,
Farmacias YZA is strengthening its em-
ployee retention rates and increasingly
regarded as an employer of choice.
“The place where
I want to be!”
VIVE 360 is
Farmacia YZA’s
comprehensive wellbeing
program that puts its
people first.
Career Development and
Continuous Learning
We promote a culture of continuous
learning and development among our
team members and their families by
offering trainings to improve or acquire
knowledge and skills. Our corporate goal
is to have 8.7 million hours of annual
training for collaborators. In 2022, more
than 7 million hours of training were
completed by employees on topics
including human rights, sustainability,
health & safety, culture & leadership,
ethics & compliance and technical knowl-
edge. Taking advantage of individual
evaluation systems, we recognize areas
of opportunity and promote our team
members’ professional development
within the organization.
More than 13 years ago, we launched
Instituto OXXO, a learning platform
of higher education developed in
conjunction with the Secretary of
Education of the state of Nuevo León,
Mexico. Since its inception, the Institute
has provided full scholarships to
employees who study the three-year
the Bachelor of Commercial Business
Management degree, which is offered
completely online. OXXO Institute works
through the D2L Brightspace platform,
which has a system that allows students
to connect from a computer, tablet or cell
phone. In addition, it has the advantage
of being used with or without internet
access and is available 24 hours a day,
365 days a year so employees can study
at times convenient for them.
In 2019, the program became available
to employees of all FEMSA business
units and currently has more than
1,000 active students. The teaching staff
includes more than 100 tutors who
are also collaborators from different
business units of FEMSA. In 2022, the
74 students who began their studies
in 2019 graduated from the program
with a great sense of accomplishment.
OXXO Institute not only offers FEMSA
employees the benefit of having a
university degree, but also offers
an educational experience linked to
personal and professional development
within the company. Since the beginning
of the program, more than 470 students
have graduated, of which approximately
278 have achieved a promotion.
Additionally, FEMSA also offers
employees the LinkedIn Learning
Content Platform, which provides more
than 16,000 pieces of educational
content developed by industry experts
that allow the employees to choose
what and when to learn, depending on
their professional and personal needs
and according to their Development
Goals. In 2022, we invested more than
US$ 14.8 million for our more than
354,000 employees to strengthen
their understanding of FEMSA’s self-
development culture and of our
Learning Model.
Promoting Values & Citizenship
We promote the development of strong social, civic
and family relationships through initiatives that foster
family integration, citizen participation and a culture of
volunteerism in harmony with the environment and the
community. During 2022, more than 100,000 employees
across our business units cumulatively spent approximately
736,000 total hours volunteering at one or more of
2,600 activities related to community support, education,
environmental sustainability or health & wellbeing. We
also welcomed more than 19,000 community members or
family members of employees to join us in these activities.
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Ps. 833.0
million
invested
in Our
Community
pillar
our community
We are committed to contributing to the economic
and social development of the communities in which
we operate, creating value by generating prosperity
and wellbeing.
Our efforts are aligned to the UN
SDGs and cover three priority topics:
Community Wellbeing, Economic
Development and Sustainable Sourcing.
Sustainability Highlights 2022
3.7 million direct beneficiaries
of community programs
Ps. +91.0 million raised
through the “Redondeo” and “Dona
tu Vuelto” programs and donated to
366 organizations
+2,600 activities
of volunteering
For detailed 2022 data related to Our Community,
please see Key ESG Data in the Appendix.
766 associations, institutions,
companies and organizations with
whom we have a membership or
association.
690 community actions completed
+650,000 units of medications
and health products donated to
communities in need, equivalent to
Ps. +20.0 million.
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OXXO has more than 25 own
brands, ranging from La Esquina
peanuts and Bitz snacks that
are part of our affordable
products with nutritional and
health-oriented attributes.
impact approach to include contributing
to the health and wellbeing of
communities and providing accessibility
to health services and products. We do
this through actions such as the donation
of medicines, our Loyalty Program, health
programs and health councils.
Community Wellbeing
To drive the wellbeing of the
communities where we operate, we
focus on promoting healthy lifestyles,
contributing to safe surroundings,
supporting clean neighborhoods and
engaging locally. Our corporate goal is
to reach 20 million beneficiaries of our
community wellbeing initiatives by 2030.
As of 2022, 690 community actions
were completed benefiting more than
3.7 million beneficiaries. Since 2021
we have reached more than 6.7 million
beneficiaries of community programs.
Supporting Healthy Lifestyles
Across FEMSA, we have portfolios of
affordable products with nutritional and
health-oriented attributes. We give access
to our products’ nutritional information to
our customers and consumers, including
ingredient lists. We also support and
comply with all labeling requirements
for packaged foods and beverages in
the markets where we operate, such as
the NOM-051 General Specifications for
Labeling of Prepackaged Food and Non-
Alcoholic Beverages in Mexico. In addition
to the importance of proper labeling and
driving greater consumer awareness, we
also actively work to assess and identify
opportunities where we can improve the
nutritional profiles of products.
For example, in the Proximity Division,
OXXO has more than 25 own brands,
ranging from La Esquina peanuts and
Bitz snacks to Vitawa alkaline water.
In 2022, we took steps to assess our
food and beverage portfolio of own
brands, identify potential nutritional
excesses and proactively work with our
suppliers to initiate reformulation plans
as appropriate, which we will continue
to make progress on in 2023. Coca-
Cola FEMSA also continues to adapt to
evolving consumer preferences by driving
the growth of the no- and low-sugar
portfolio of sparkling beverages.
We have zero tolerance for the sale
and marketing of products to restricted
populations, including the sale of
alcoholic or tobacco products to minors
or the sale of medicines without
prescriptions. We also participate
in efforts to promote responsible
advertising and promotion to minors.
For example, as part of Coca-Cola
FEMSA’s commitment to the wellbeing of
consumers and customers, all advertising
adheres to The Coca-Cola Company’s
Responsible Marketing Policy and Global
School Beverage Guidelines, and we do
not market products in channels with
an audience predominantly of children
under age 13.
Finally, FEMSA Health develops and
promotes access to low-cost and generic
medicines, as well as quality medical
services. We have defined our social
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Contributing to Safe Surroundings
We have points of sale, facilities and
work centers that help promote safe
environments in the communities
where we operate, including ensuring
areas of public access are well-lit areas
with security cameras.
We invest in technology and develop
practices, protocols and management
systems to ensure that our operation’s
vehicles travel safely on public roads.
At Solistica, for example, there is
a growing commitment to safety
processes and the prevention of
road and industrial accidents, proven
through the policy, “ABSOLUTE ZERO IS
POSSIBLE,” which guides our transport
operators to exercise their maximum
levels of commitment, self-care and
judicious adoption of all company
standards on excellence in road
safety. Solistica Panama and Coca-Cola
FEMSA proved that “zero” is possible,
celebrating twelve consecutive years
in 2022 without a road-related fatality
among transport operators.
Solistica was also pleased to participate
this year in the “Companies Allied for
Road Safety” initiative sponsored by
the Secretaría de Movilidad (SEMOVI)
in Mexico City, where nearly 150
transport operators from Solistica were
trained through a series of road safety
awareness and education workshops.
SEMOVI’s initiative seeks to strengthen
road safety and reduce traffic incidents
in Mexico City with the goal of preventing
traffic incidents and taking care of the
lives of their employees and the public.
Solistica will continue to expand these
beneficial training opportunities with
SEMOVI in 2023 and beyond, which have
been very well received by operators.
Clean Communities
To contribute to the environmental
cleanliness of the communities where
we operate, we promote a circular
economy mindset and a culture
of responsible waste collection
and management. As part of this
commitment, at the end of 2022,
Coca-Cola FEMSA, together with
leading plastic packaging solutions
provider, ALPLA, inaugurated the first
supply center in Veracruz, Mexico
that, beginning in the first quarter of
2023, will collect and send up to 2,000
tonnes of PET per year to the Planta
Nueva Ecología de Tabasco (“PLANETA”)
recycling complex in Tabasco.
We opened five new collection centers,
so we can increase recycling in the
southeast region of the country.
We also aligned with small customers,
as well as with larger chains, to collect
waste at their stores through
“Mi Tienda sin Residuos” (“my zero
waste shop”) program.
In addition to the benefits for the
circular economy, another strategic
objective of PLANETA and its supplier
network is to promote community
wellbeing and economic development
by formalizing the collector partners
(suppliers) through capacity building,
raising collective awareness and
creating formal and fair jobs.
For more on the circular economy,
see pages 63 and 70.
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Engaging Local Communities
In addition to serving our communities
through the portfolio of products and
services we offer, an important part of
our social license to operate is based
on the relationships we build with our
neighbors. In 2015, FEMSA and our
business units developed the MARRCO21
model to understand how our opera-
tions impact the immediate commu-
nity, and, in turn, how the community
impacts our workplaces.
MARRCO
The MARRCO model comprises five
steps (see figure) for managing risks and
community engagement, which helps to
guide and inform our value-generating
engagement activities and programs,
including volunteering or the donation
of medicines, food, fuel and supplies.
The methodology aims to build and
maintain effective relations with local
communities by fostering dialogue
and mutually beneficial collaboration
opportunities. It is currently deployed
in Coca-Cola FEMSA, OXXO (in Mexico,
Colombia, Chile and Peru), Tiendas
Bara, OXXO GAS, Farmacias YZA,
Imbera and PTM.
For example, in 2022, FEMSA Health
expanded the use of MARRCO from
Mexico to its other territories of
operation (Ecuador, Colombia and
Chile) to guide its vision of being
a health ally for the wellbeing of
communities. The methodology
was used to strategically identify
and prioritize the best collaboration
initiatives to achieve this, such as
donations of medicines, products with
a cause and free consultations (see
pages 52-53), among others.
Similarly, Coca-Cola FEMSA adapted
and deployed a customized version
of the methodology in select critical
sites according to community risks.
In this way, MARRCO operates as the
“hub” that connects and articulates
the different sections of responsibility
between FEMSA, Coca-Cola FEMSA
Corporate, operations, plants and
distribution centers, based on four
deliverables: leadership and projection;
reputation and positioning; operational
continuity; and social license. Looking
ahead, Coca-Cola FEMSA will expand
the implementation of MARRCO to
additional sites.
1
Identify and
understand
DIALOGUE
<
T
S
U
R
T
<
I
N
O
T
A
R
O
B
A
L
L
O
M E N T < C
MARRCO
C O M M I T
5
Learn and
improve
Business abilities, resources and objectives.
Needs, resources and commitments of the business with
the community.
Community features, needs and priorities.
2
Analyse
and plan
Analyzes the risks and opportunities for the
design of the community engagement activities
and programs.
3
Agree
and act
Implies listening and building with the
community commitments and social
programs of common interest.
4
Evaluate
and
measure
Evaluates and measures the impact of communi-
ty engagement activities.
Allows the strengthening and development of abilities through
the identification of opportunity areas, best practices and
learning exchange.
21 La Metodología de Atención a Riesgos y Relacionamiento Comunitario (The Risk Attention and Community Relations Methodology)
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Engagement Programs
We know mobility and transportation
are vital for many nonprofits and
institutions that help the community.
For the third consecutive year,
OXXO GAS ran the Litros con Causa
(Liters with a Cause) program, which to
date has delivered more than 100,000
liters of fuel and helped more than
540,000 people in the communities
where we operate. During 2022,
more than 36,000 liters of fuel was
donated to local fire departments,
and we also launched a call to all civil
organizations in Nuevo León interested
in receiving this kind of aid. Hundreds
of organizations petitioned according
to certain criteria, and two from the
health sector were selected to receive a
total of 2,500 liters of fuel: Cruz Rosa, an
organization that supports low-income
women with cancer and Sana en Casa,
an organization that supports families
who have a sick person or someone with
a disability at home. The fuel donations
to these two organizations were enough
to guarantee the mobility of the patients
in need for up to three months.
In our retail businesses we also have various opportunities for our customers to join
in the support of their communities through donation campaigns. For example:
Donate Your Change: In our Retail business, the “Redondeo” and “Dona tu
Vuelto” (Donate your Change) programs have been extremely successful in
raising awareness and directing funds to institutions that work for the benefit
of society. Since the program began in 2002, Ps. 1.5 billion have been donated
by retail customers to more than 3,800 organizations. In 2022, OXXO and
Tiendas Bara (our discount chain for the home pantry) in Mexico collected
Ps. 84.9 million and donated it to 349 organizations; Farmacias YZA in Mexico
channeled Ps. 4.1 million to 14 local institutions; and Maicao and Farmacias
Cruz Verde in Chile collected Ps. 74,000 for two organizations.
Product with a Cause: Through a new “Producto con Causa” (Product with
a Cause) campaign this year, when Farmacias YZA customers in Mexico
purchased eligibly marked products, either a percentage of the sales were
donated to support a social cause, or, for each product purchased, an equal
one was donated to the community. We were pleased to have five “own
brand” products participate in this initiative, and at the end of first month
of the pilot program in two locations in Mexico, nearly 22,000 health and
wellness products and more than Ps. 600,000 were donated to our partner
nonprofit associations.
Donate and Help: Our Fybeca and SanaSana drugstores in Ecuador
partnered with nonprofit medical service organization, Operación Sonrisa
(Operation Smile), to activate a “Donate and Help” program inviting customers
at all our points of sale nationwide to make monetary donations toward
transformational surgeries for children living with cleft lip and palate. In
the first year of the program, we donated supplies and made a monetary
contribution of nearly US$ 138,000.0 to Operación Sonrisa, which was enough
to fund free surgeries for more than 200 children, as well as cover additional
services in other specialties such as pediatrics, speech therapy, nursing,
psychology and dentistry.
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Economic Development
More than 6,700 free consultations were
provided to community members by Farmacias
YZA healthcare professionals as part of a pilot
program for the prevention and treatment of
illnesses and/or the early detection of certain
health conditions.
We are working to create economic
value for our retail customers in the
communities where we operate.
This includes supporting the small
and mid-size companies in our value
chain, purchasing from local suppliers
and promoting entrepreneurship by
investing in start-ups.
Economic, Labor, Financial &
Digital Inclusion
In line with the capabilities of each busi-
ness, we contribute to economic, labor,
financial and digital inclusion in the
communities where we operate through
our actions, products and services.
For example, to reach people of diverse
socioeconomic backgrounds who may
have limited or no access to healthcare
guidance, products or services, FEMSA
Health sponsors community programs
that leverage our products and medica-
tions, pharmaceutical intellectual capital
and our installed capacity of medical
offices. In 2022, FEMSA Health launched
the following programs:
Product donations: FEMSA Health recovered and donated more than
650,000 units of medications and other products to communities in need, an
amount equivalent to more than Ps. 20.0 million. Of this total, Farmacias YZA in
Mexico donated more than 240,000 units; Socofar in Chile donated more than
278,000 units; Cruz Verde in in Colombia donated more than 111,000 units; and
Corporación GPF in in Ecuador donated more than 21,000 units.
Free consultations: More than 6,700 free consultations were provided to
community members by Farmacias YZA healthcare professionals as part
of a pilot program for the prevention and treatment of illnesses and/or the
early detection of certain health conditions, such as cardiovascular disease.
In addition to the wellbeing benefits this provides to our customers, the
program also drives foot traffic to our stores and increases the volume of
patients in our clinic database, where we can support them in other ways,
such as through our free loyalty program that offers discounts on health and
wellness products.
Juntos Hacemos +: In Colombia, our Cruz Verde drugstores and pharmacies
launched a new program called “Juntos Hacemos +” to educate customers on
the proper use of medications and on issues related to their specific pathology.
The complimentary program began with activities focused on diabetes patients
and has reached at least 100 people monthly since the start of the pilot.
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OXXO PREMIA reached 22.3 million total
users in 2022, a more than 600% increase
from the 3 million accounts that had been
created as of the end of the prior year.
On the digital front, FEMSA’s Proximity and Digital@FEMSA divisions are including
consumers at the center of their business strategy and bringing secure financial
services to traditionally underserved populations by leveraging mobile device
innovation and technology. For example:
Spin by OXXO: With our strengths in correspondent banking and financial
services, as well as a growing prowess in the digital world, in 2022, we continued
to expand the reach of Spin by OXXO,22 our digital wallet first announced in
2021 that digitally offers a variety of financial services, including sending and
receiving funds through a cell phone; accepting deposits, withdrawals and
balance inquiries at more than 21,000 OXXO stores; facilitating purchases
through a VISA card; and completing SPEI® transfers and transfers between app
users. In 2022, Spin by OXXO received its definitive authorization to operate as
a financial technology institution in Mexico – a relevant milestone that will allow
us to continue pursuing our financial inclusion ambitions. As of the end of 2022,
we have reached 3.9 million Spin by OXXO active users. Nearly 54% of Spin by
OXXO’s customers are women, a group traditionally underserved and with more
limited access to financial products or services.
OXXO PREMIA: Our loyalty program in Mexico, OXXO PREMIA, continued to
grow during 2022 following improvements to the app’s user experience and
functionality. By the end of the year, we had reached 12.9 million active users, and
we are continuing to focus on generating more participation and understanding
our most frequent users. OXXO PREMIA operates either as a stand-alone program
or in tandem with Spin by OXXO, thanks to the option offered to Spin by OXXO
customers to enroll in OXXO PREMIA when opening their account. Members
receive benefits such as OXXO PREMIA points (earned from purchases), SellOXXOs
(free products when reaching a certain goal), and other exclusive promotions.
22 Spin by OXXO operates through Compropago S.A. de C.V. I.F.P.E.
SME Development & Local
Procurement
Another way we support the economic
development of our communities is
through the development and support
of our suppliers. This may include
forming alliances on sustainability
actions with suppliers and business
partners for things like PET collection
drives, Product with a Cause campaigns
or tests for changing packaging. We also
work on initiatives for the development
and professionalization of the informal
or non-institutionalized segments of the
industries in which we participate.
For example, we strive to support
small and mid-size enterprise (SME)
customers in the Coca-Cola FEMSA
value chain through point of sale and
inventory management strategies,
as well as financing mechanisms and
crowdfunding to install renewable solar
energy systems on storefronts. Through
a program launched in Mexico in 2022
by Coca-Cola FEMSA in collaboration
with a crowdfunding platform and the
German Cooperation for Sustainable
Development (GIZ), more than 30
photovoltaic systems were developed
using an innovative crowdfunding
financing mechanism. By consuming
renewable electricity, the program not
only reduces SMEs’ greenhouse gas
emissions but also their operating costs
by as much as 50-70%.
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Welcoming Local Suppliers
to OXXO Shelves
OXXO is always looking to
expand the diversity and quality
of products we offer, and it is a
bonus when we can bring more
flavors of the local community to
our convenience store shelves.
Mieles Don Jorge, led by Vianey Guzmán and
Enrique Moscoso - is a small, family-owned
honey business that began with one product at
OXXO – 100% natural honey – and we now offer
six additional products from the brand, including
honey-sweetened cakes, butter and canned chili
peppers. As of the end of 2022, OXXO customers
can find Mieles Don Jorge products at OXXO stores
in Tabasco, Chiapas and Ciudad del Carmen, Mexico.
“Our sales have grown exponentially since receiving
the opportunity to register as a supplier to OXXO. This
means we have been able to expand our business,
increase our profitability and grow our staff by more
than five times – bringing those economic benefits back
to the families and communities of our employees.”
Vianey Guzmán Quijano,
Mieles Don Jorge sales manager and daughter
of the late founder, Jorge Guzmán.
READ MORE CASES
1
2
3
4
Encouraging Entrepreneurship
We contribute to the development of
the entrepreneurial ecosystem in our
geographies through investments in
start-ups and participation in entre-
preneurship programs. Through our
corporate venture capital (VC) firm,
FEMSA Ventures, and in collaboration
with top VC firms across Latin America,
we are on a quest to disrupt industries
and transform people’s lives by finding
investment opportunities to support
world-class entrepreneurs by scaling up
innovative ideas in ways that successfully
leverage FEMSA business platforms.
Creating Value from Food Waste
One of FEMSA Ventures’ direct
investments in 2022 was to CoreZero,
an emerging climate-tech Platform as
a Service that is creating value from
waste by connecting to an organization’s
operations and measuring the impact of
its waste minimization initiatives. Using
a proprietary methodology, CoreZero
assesses a project’s potential in real
time and generates carbon credits
– or verifiable emission reductions
from certified projects that avoid
greenhouse gas emissions (GHGs)
– creating an incremental financial
incentive to scale up climate action.
In 2022, CoreZero closed a
US$ 7 million pre-series A fundraising
round, and FEMSA Ventures was
excited to participate alongside the
Inter-American Development Bank and
other supporters. With the funds, they
plan to expand their team, grow their
business and update their platform to
further improve seamless automations.
One of CoreZero’s successful
agreements during the year was with
the non-profit, Red de Bancos de
Alimentos de México (Red BAMX), made
up of 53 food banks across Mexico
which rescues food (before it becomes
waste) and redirects it to families,
communities and institutions in need.
Our OXXO Distribution Centers (CEDIS)
have been working with Red BAMX
weekly since 2010, collecting and
donating surplus and undamaged
products from OXXO stores to
populations in need, including
groceries, drinks, fast food and dairy
products. In 2022 more than
1,170 tonnes of food from OXXO were
redirected to Red BAMX, benefiting
more than 64,000 people.
Now, as OXXO and Red BAMX continue
to work together to address the food
gap in vulnerable communities, with
the help of CoreZero, they will also be
helping to combat climate change by
avoiding the GHGs associated with
food waste. Once the carbon credits
are calculated and independently
verified based on the amount of food
rescued, CoreZero sells the credits
and splits the profit with the food
bank, creating financial resources that
can be redirected back into fighting
hunger. Already in 2022, CoreZero
has created 225,000 carbon credits
with its partners, and is on track to
generate at least four million more
over the next ten years.
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Sustainable Sourcing
At FEMSA, we strive to work with our
suppliers to reduce the environmental
and social impacts generated by our
commercial interactions and strengthen
the sustainability of our entire value
chain. This includes engaging with our
suppliers and business partners on sus-
tainability issues so that we can identify
and share best practices.
In 2022, we launched a Sustainable
Sourcing Committee with the purpose
of achieving a convergence of
economic, social and environmental
value by promoting the application
of sustainability criteria and practices
within FEMSA’s procurement function.
During the year, the Committee helped
to further define FEMSA’s ambition
to “buy local,” that is, to increase the
percentage of purchases from local
suppliers for our procurement needs.
The rationale behind this objective is
to not only contribute to the economic
and social development of the
communities where we operate, but
to also minimize the environmental
impact of merchandise transportation.
With input from the Sustainable
Sourcing Committee, our 2030
corporate goal is to achieve and
maintain a >90% percentage of
purchases from local suppliers in all
countries where we operate, triggering
actions that allow us to advance our
purpose as a sustainable procurer of
goods and services. A purchase from a
supplier is considered “local” when the
work center that makes the purchase
and the seller are in the same country
(i.e., same tax registry).
We also take steps to ensure that all
our suppliers operate with ethics and
integrity, based on responsible business
policies, principles and processes that
comply with applicable legislation and
best sustainability practices. FEMSA’s
Supplier Guiding Principles were
updated in 2022 based on FEMSA’s
Code of Ethics and related corporate
policies. They contain the minimum
expectations that we require of our
suppliers to manage in areas of Human
and Labor Rights, Sustainability, Culture
of Lawfulness and Information Security.
The Guiding Principles are also
deployed in the procurement teams
of all business units and utilized as a
critical supplier engagement tool. In
2022, our business units took steps to
help drive increased awareness of the
responsibilities of all current and new
suppliers and to find opportunities to
improve compliance with the necessary
methods and practices outlined in the
Guiding Principles.
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For example:
Coca-Cola FEMSA continued to uphold a robust supplier risk management
process, including assessing all suppliers for compliance with social and human
rights regulations using the EcoVadis platform, as well as Ikus, an agency that
leads supplier evaluations, qualifications and trainings.
FEMSA Health classified critical suppliers, conducted a survey to assess and
improve key criteria and is working toward registering all existing and new
suppliers with signed acknowledgements of the Supplier Guiding Principles.
Solistica disseminated updated commitment letters to suppliers and added
more specific clauses to purchase orders in line with the Supplier Guiding
Principles and Code of Ethics to ensure the clear communication and
deployment of expectations. Nearly 800 suppliers received approximately 6,300
purchase orders that incorporated the Guiding Principles.
Imbera distributed sustainability questionnaires, conducted audits, launched
action plans and closed related findings. This work complemented its annual
workshop with suppliers to discuss objectives, evaluation processes and new
sustainable projects and ideas.
Dressing for Success in Sustainability
In partnership with a key supplier
over several years of designing and testing, we
increased the percentage of recycled PET fiber
in the Proximity Division’s OXXO store employee
uniforms from 50% (as of 2020) to a full 100%,
without increasing the cost of the product. Each
garment upcycles the equivalent of seven 1-liter PET
bottles that would otherwise be discarded as waste
in our environment. The manufacturer of the new
design also saves on natural resources, including
20% greater efficiency in water consumption
and 37% greater efficiency in carbon footprint.
READ MORE CASES
1
2
3
4
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our planet
We are committed to contributing to the care of the world
around us, minimizing the environmental impacts of
our operations throughout the value chain and those of our
products and services.
Ps. 7,100.0
million
invested in
Our Planet
pillar
Our efforts are aligned to the UN SDGs
and cover three priority topics:
Climate Action, Water Management
and Circular Economy.
Sustainability Highlights 2022
68.7% of total operational waste
diverted from landfills
1st study of climate-related risks
& opportunities in alignment with
TCFD recommendations
58.0% of FEMSA’s total electricity
consumption from renewable
sources
25.0% of raw materials used
in products and packaging of
recycled origin
1.46 liters of water per liter
of beverage produced by
Coca-Cola FEMSA
81.0% progress toward our goal
of reaching neutral water balance
in all our operations
+15,600 sites powered with
renewable energy
27.0% recycled PET used on
average across Coca-Cola FEMSA’s
plastic bottle presentations
For detailed 2022 data related to Our Planet,
please see Key ESG Data in the Appendix.
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Climate Action
We recognize that climate change is
one of the most important sustainable
development challenges facing the world
and we are committed to supporting
its mitigation by avoiding and reducing
the emissions of greenhouse gases
(GHGs) into the atmosphere. To do this,
we will reduce GHGs generated by our
operations and supply chains, focus
on expanding the use of renewable
energy, strengthen the sustainability of
our transportation fleet and develop
sustainable products and services.
CO2e Emissions Reduction
Across FEMSA’s operations and supply
chains, we are working to reduce our
Scope 1, 2 and 3 emissions and pro-
mote energy efficiency.
For example, at OXXO, we have a
comprehensive program that allows us
to save energy in offices, distribution
centers (CEDIS) and stores through
advances in technology, including solar
control films and insulation, among other
technologies. In OXXO Mexico stores,
as of 2022, we have reduced our total
energy use by 38% below 2009 levels.
In June 2020, Coca-Cola FEMSA became
the first Mexican company and the third
in Latin America to obtain approval from
the Science Based Targets initiative
(SBTi) for its 2030 GHG emissions
reduction goals. As of 2022, we remain
on track to achieving our 2030 targets
(see table).
Coca-Cola FEMSA Performance on SBT23
Reduce absolute scope 1 and 2 GHG emissions
from our operations by 50% by 2030, compared with
a 2015 baseline year
Reduce absolute scope 3 GHG emissions from the value
chain24 by 20% by 2030 compared with a 2015 baseline year
Achieve 100% renewable electricity for our operations
by 2030
2021
28.0%
14.0%
53.0%
As a next step, FEMSA is currently
working to establish SBTi-approved
emissions reduction targets for all
FEMSA business units individually.
As part of this process, during 2022,
each of FEMSA’s business units com-
pleted a carbon footprint inventory and
took other steps to prepare for defining
their own science-based targets. In
2023, we aim to work with SBTi to final-
ize the approvals for proposed targets
for each business unit.
For more information on FEMSA’s analysis
of risks and opportunities related to
climate change, see page 131.
23 Performance reflects all our operations and is calculated based on the SBTi.
24 Covering purchased goods and services and upstream transportation and distribution.
2022
29.0%
17.0%
66.0%
2030 Goal
50.0%
20.0%
100.0%
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Renewable Energy Use
Sustainable Mobility
FEMSA’s sustainability strategy is
focused on the efficient use of energy
and the use of renewable sources.
Since 2015, we have significantly
increased renewable energy use across
all our business units, primarily through
strategic partnerships with wind farms in
Mexico. Our corporate goal is to reach
85% renewable energy use across our
operations by 2030, and as of 2022, 58%
of FEMSA’s total electricity consumption
comes from renewable sources.
This includes 15,531 sites in Mexico
that are powered with renewable
energy. Approximately 61% of our total
electricity needs in Mexico are covered
by renewable sources, representing
591,317 tonnes of CO2e avoided.
We know that to reach our ambitious
target of 85%, increased efforts will be
required, given the complexity of our
business and our geographic footprint.
Regulatory uncertainty and limitations in
Mexico and other countries also pose a
challenge to long-term planning around
the private procurement of renewable
energy. For example, Proximity, which
represents 69% of FEMSA’s total
electricity consumption, is a highly
dispersed buyer of electricity.
For more information, please
visit https://energia.femsa.com/
We incorporate the use of electric vehicles and other new technologies in our operations’
fleets and, whenever possible, we use renewable energy as its energy source. We also
promote efficiency in the operation of our utility and distribution vehicle fleets by optimizing
routes, training operators and incorporating new technologies. For example:
Through Coca-Cola FEMSA’s Sustainable Mobility Strategy, we aim to reduce the impact of
our fleet on the CO2e emissions of our supply chain (including primary and secondary distribution
trucks), and to position ourselves as an industry leader in Latin America in terms of vehicle efficiency,
environmental stewardship and safety. Aligned with this strategy, our projects are to: transition of
own transport fleet to electric fleet efficiency, prioritizing areas with restricted mobility and achieve a
25% increase in efficiency in fuel consumption (MJ)/kilometers of distance covered (km). In 2022, we
expanded our fleet of electric vehicles to a total of 482 vehicles.
At Solistica, we are continually working to reduce the carbon footprint of Transportation Operations
(LTL) through more efficient vehicles, including a fleet of twelve vehicles that began operating in 2022
and run on 100% natural gas, helping to avoid an estimated +80 tonnes of CO2e as of the end of 2022.
Solistica has also launched two models of electric cargo tricycles, which we use for last mile delivery
in Bogotá, Colombia, in search of having vehicles with low or zero emissions. The environmental
benefits of using seven tricycles for approximately 16 months (July 2021-November 2022) are
estimated to be 35.4 tonnes of CO2e avoided, 8,833 liters of diesel saved and 96,179 grams of
particulate matter (PM 2.5) avoided. In addition to the emissions avoided, these bikes also provide
multiple social benefits, including promoting the culture of sustainable transport and helping
to improve the city’s air quality. Similarly, in Brazil, we operate electric vehicles and continuously
monitor ways to consolidate operational loads as much as possible.
In our Fuel business, we serve 7,000 B2B clients with more than 70,000 vehicle units, representing
approximately 20% of total sales. To support these clients better, we began the implementation
of our own fleet card, “EOX,” which provides a comprehensive technological solution in a single
administrative platform, so clients who manage the fuel of their fleets can do so in the most efficient
ways possible. The program drives efficiencies through cargo control, security and telemetry all in
the same solution.
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Sustainable Products & Services
We strive to contribute to climate
change mitigation efforts by leveraging
our portfolio of products and services
to support innovative, technological
and sustainable solutions. For example,
in 2022, OXXO and Tecnológico
de Monterrey created an alliance
to contribute to sustainable waste
management, following research
on opportunities to transition
from petroleum-derived plastics
to bioplastics. As a first project, in
collaboration with OXXO’s packaging
suppliers, a packaging change test was
developed for De la Esquina peanuts,
OXXO’s own brand. In the prototype, an
additive was added to the bioriented
polypropylene to speed up the
biodegradation time and reduce the
environmental impact of conventional
plastic. The developed prototype has
shown excellent physicochemical
properties in shelf tests, similar to
those of conventional packaging, and
we will continue our collaborations to
work toward a final commercialization
of this sustainable product solution in
the future.
Other examples of sustainable products from across
FEMSA include:
Coca-Cola FEMSA strives to lighten the weight of packages
and utilize a greater percentage of recycled resin (rPET) in
packaging (learn more on page 64).
Imbera continues to offer a low-carbon cooler solutions
portfolio (learn more on page 65).
PTM products are designed to be 100% recyclable and to
have greater durability and resistance, allowing the life cycle
of some elements to be longer (learn more on page 66).
Helping Customers Reach their
Green Cleaning Goals
The Envoy Solutions company, WAXIE Sanitary Supply,
has developed Waxie GPS® Green Partner SupportTM as
a platform for customers who would like to implement
a green cleaning program in alignment with their own
sustainability goals. The customized program combines
third-party certified low environmental impact cleaning
products with training and consultative expertise on
effective cleaning procedures presented by our WAXIE
employees who are LEED® Accredited Professionals and
CIMS-GB ISSA Certification Experts.
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Water Management
We are committed to using water
efficiently as it is not only an
indispensable element for our
operations as a business, but for the
socioeconomic development and
wellbeing of communities.
Optimizing Water Efficiency
We have best-in-class practices,
supported by action plans to optimize
water efficiency in our operations,
as well as promote the efficient use
of water in our supply chain. For
example, in Farmacias YZA in Mexico,
to drive greater empathic connections
between our stores, the community
and the environment, we installed 45
condensate water recovery systems
through which we can recover water
from coolers to irrigate green areas
that are near our points of sale. Thanks
to this effort, in 2022 we were able to
reduce the water consumption from
municipal water supplies by more than
985,000 liters.
Contributing to Water Accessibility,
Sanitation & Hygiene (WASH)
Advancing Water Security
Our WASH strategy is based on
improving access to safe drinking water.
For 2023 our ambition is to work with
our communities on WASH initiatives and
develop access projects.
As an example of this work, in alliance
with FEMSA Foundation, The Nature
Conservancy (TNC, the Inter-American
Development Bank (IDB), and the Global
Environment Facility (GEF) on the Latin
American Water Funds Partnership.
Together, we have developed 26 water
funds, of which eight are located within
our countries of operation.
Our corporate goal is to achieve neutral
water balance in all our operations by
2030, and as of 2022, we have reached
81% toward this goal. During the year
we established a methodology to
assess and quantify the total water
replenishment projects and activities
being carried out by business units
across FEMSA. This information will
guide our actions and next steps to
work toward our goal of achieving
neutral water balance in our operations.
Coca-Cola FEMSA is also committed
to using water more efficiently and to
further protect water security in the ter-
ritories where we operate. This includes
replenishing more than +100% of the
water utilized to produce beverages
across our bottling operations, focusing
on those determined to have high hydro-
logical stress. Currently 100% of water
used to produce Coca-Cola FEMSA’s
beverages is returned to the environ-
ment in main markets, and by 2030,
Coca-Cola FEMSA will continue to return
to the environment the same amount, or
more, of water used in the production of
beverages. As of 2022, Coca-Cola FEMSA
achieved a water-use ratio of 1.46 per
liter of beverage produced, down from
1.47 in 2021 and 1.49 liters in 2020.
For more information on Coca-Cola FEMSA’s
progress on the 2024 and 2026 Sustainable
Performance Targets associated with its
sustainability-linked bond, please see page 37.
For more information about Water Security
initiatives, please see page 68.
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Circular Economy
To support the environmental
health of our communities, FEMSA’s
sustainability strategy includes a focus
on the adoption and promotion of
the principles of the circular economy,
especially related to waste management
and recycling.
Reducing & Eliminating
Operational Waste
We ensure proper waste management
in our operations and aim to prevent
waste from reaching sanitary landfills.
We also seek the elimination of single-
use non-recyclable plastic from our
operations. Our corporate goal is to
achieve 100% diversion of operational
waste from landfills by 2030. We also
have a Sustainability Performance
Target (SPT) to reach 65% diversion of
operational waste from landfills by 2025
as part of our Sustainability-Linked Bond
(for more information on our SPTs,
please see page 134). As of 2022, we
have reached 68.7% of total operational
waste diverted from landfills. In addition,
100% of our beverage manufacturing
plants in Mexico have achieved Zero
Waste to Landfill certification.
Rewards for Recycling
In alliance with our start-up partner, Lealtad Verde, in
2022 we installed automated biorecycling machines in
30 OXXO stores in Mexico City and Monterrey as a pilot
test to help promote recycling and the importance of the
circular economy in Mexico. The machines accept PET,
HDPE and aluminum cans and have specialized sensors
to detect any product entered. The machines have a
capacity of up to 30 kilograms of urban solid waste and
crush each piece to optimize the available remaining
space within the machine.
To incentivize participation, OXXO offers a reward
program when users responsibly deposit their bottles
and cans into the biorecycling machines. To earn points,
users can download the Lealtad Verde app, create an
account and begin collecting points by bringing their
waste to the machines to recycle. Credits accumulate
points to the user’s account, which can be redeemed for
various OXXO promotions. We plan to utilize the insights
from this initial pilot program to expand to more areas
over time and create an even greater positive impact.
OXXO offers a reward program
when users responsibly deposit
their bottles and cans into the
biorecycling machines in alliance
with Lealtad Verde.
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Through a variety
of collective and
individual actions,
Coca-Cola FEMSA
collected more than
80,000 tonnes of PET.
Sustainable Packaging
We seek to ensure that our packaging uses recycled materials and is recyclable at
the end of its useful life. We also promote the elimination, reduction, recyclability and
recycled content in supplier packaging. For example:
At Coca-Cola FEMSA, we continue to work closely with our primary goods
and packaging suppliers to reduce their emissions. We also strive to lighten
the weight of our packages and utilize a greater percentage of recycled resin
(rPET) in our packaging. In alignment with FEMSA’s goal to send zero waste
from operations to landfills by 2030, 77% of out bottling plants have earned
Zero Waste to Landfill certification in 2022, up from 46% of our bottling plants
in 2021.
We also remain committed to World Without Waste, the global initiative led
by The Coca-Cola Company, which includes two 2030 targets to collect and
help recycle the equivalent of 100% of the primary packaging we place in the
market, as well as integrating 50% rPET in our bottles. As of 2022, through
a variety of collective and individual actions, we collected more than 80,000
tonnes (or approximately 25.7%) of the PET that we put into the market. To
ensure adequate collection processes across our regions of operation, we
actively collaborate with and participate in various civil and industry alliances,
such as ECOCE, a Mexican nonprofit environmental association that promotes
waste collection and recycling.
In addition, Coca-Cola FEMSA reached a use of recycled PET in its packaging
of 27% in 2022. We also recycled 98.5% of our industrial solid waste in 2022.
Learn more about our new recycling plant, PLANETA, that is taking a leading
role in processing post-consumer PET on page 50.
At FEMSA Health, in 2022 we continued advancing our
reverse logistics initiative in our operations in Colombia,
Ecuador and Mexico, through which we utilize the
product delivery trips we make to our branches and
pharmacies to also collect packaging, such as cardboard,
cooling gels and coolers, and return it to our distribution
centers for recycling. This allows us to take advantage of
the same transport, generating less CO2e emissions while
connecting with the waste recycling process that we have
operating in our warehouses. In the same way, if any
material is still usable (e.g., cardboard) it is reused in the
packaging process.
In 2022, in Mexico, more than 2.6 tonnes of cardboard
have been recycled. In Colombia, more than 164,800
cardboard boxes, more than 388,500 units of cooling
gels, and 16,750 expanded polystyrene coolers have
been recovered. Through this initiative, it has been
possible to reduce the virgin material used in product
packaging in our value chain and contribute to the
circular economy.
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Product & Service Circularity
As part of our commitment to
the circular economy, we strive to
ensure the collection and recycling
of packaging and products with the
highest environmental impact are
sent to market by our operations.
This includes maximizing the collection,
content of recycled materials and
recyclability of our own-brand products
such as PET bottles or coolers at the
end of their lifecycle.
In 2022, OXXO launched a public PET
collection campaign in Acapulco, Oaxaca
and Chilpancingo collecting more
than two tonnes of PET, thanks to the
participation of more than 30,000 people.
OXXO Chile launched the Puntos
Limpios (Clean Points) initiative in seven
of its stores in Santiago. The program
seeks to reduce the amount of waste
generated and confirm traceability to
the recycling plant, with the support
of containers that have innovative
technology, such as intelligent sensors
that report the filling of containers and
automate the operational process of
removal. Through this initiative, we
have been able to collect and recycle
25 tonnes of waste in 2022.
OXXO Chile launched the Puntos
Limpios (Clean Points) initiative in
seven stores in Santiago, collecting
and recycling 25 tonnes of waste.
Imbera-REPARE:
Sustainable Refrigeration
Within FEMSA Strategic Businesses,
Imbera-REPARE is a world leader in
the commercial refrigeration industry,
exporting equipment to customers
in more than 60 countries from
three production facilities in Brazil,
Colombia and Mexico. Elsewhere in
the FEMSA family, Imbera-REPARE
provides refrigeration maintenance
and installation services for Torrey,
Coca-Cola FEMSA, OXXO and
Farmacias YZA. We know that negative
impacts of this industry can include
waste and material consumption at
the raw materials extraction stage for
manufacturing; the carbon footprint
implications during the use phase of
products due to potential refrigerant
leakage; and the electronic waste
when coolers reach the end of their
useful life. With this in mind, and in
alignment with FEMSA’s goal to reach
zero operational waste to landfill
by 2030, Imbera’s commitment to
the circular economy is a strategic
imperative that ensures our
equipment’s design, manufacturing
process and final disposal has the
least amount of impact on the
environment as possible.
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PTM Recycling Leadership
Through its high-performance engineering and recycling
capabilities, PTM’s more than 1,000 employees design
and manufacture plastic transformation projects tailored
to each customer in support of their operational and
marketing strategies for materials handling, food,
beverages and automotive. During 2022, we recycled more
than 38,117 tonnes of plastic out of a total production of
50,413 tonnes. In addition, 81.2% of PTM’s products —
including plastic pallets and plastic crates, among others —
were made from recycled materials in 2022.
We begin at the design phase with
our high-performance engineering
capabilities, redesigning cooler
components based on the principles
of circular economy and then re-
incorporating them into production.
In 2022, for example, we redesigned
two cooler components (composed
of 80-100% recycled material), which
are 100% recoverable and 100%
recyclable at the end of their useful
life. In addition, we use an energy
efficient technology which can reduce
the carbon footprint of the equipment
by up to 30%, which is the equivalent
of saving an average of one tonne of
CO2e over the life cycle of a standard
chiller. We also use eco-friendly R290
refrigerant and ensure that our certified
equipment is labeled as energy efficient
according to the countries we operate
in (e.g., Energy Star in the United States
or FIDE25 in Mexico). At Imbera today,
we design equipment with up to 24%
recycled material, that, at the end
of its useful life, is 99% recyclable or
reusable. Our EOS-REPARE facility in
San Juan del Río, Querétaro, Mexico,
was inaugurated in 2019 and is the
first plant in Latin America that, in
alliance with Imbera, can recover,
repair, redesign, reuse or recycle up
to 99% of the parts of refrigerators at
the end of their life (and has a target
and action plan to achieve 100%).
Approximately 53% of the coolers that
Coca-Cola FEMSA withdraws from the
market are sent to the EOS-REPARE
plant for evaluation and use of parts
that are still useful. In 2022, we
recovered more than 155,000 pieces
with Coca-Cola FEMSA that were
reused and incorporated into park
maintenance and the manufacture
of new equipment, thereby avoiding
the generation of approximately
247 tonnes of CO2e.
In 2022, Imbera, EOS-REPARE, PTM
and Coca-Cola FEMSA, among other
partners, created a circular economy
alliance for the final disposition of
coolers, striving to preserve the
maximum value of all equipment,
components and materials.
Through this approach, as of the end
of 2022, more than 28,300 pieces
of equipment were responsibly
processed, avoiding more than
3,000 tonnes of waste to landfill. All
the material was either recovered
and reconditioned or recycled, with
some pieces even being upcycled
25 Fideicomiso para el Ahorro de Energía Eléctrica FIDE
directly back into the manufacture of
components for new equipment.
As part of this process, EOS also
ensures the correct disposal of
hazardous waste, including complete
traceability of all materials. This
strategy helps to reduce the
generation of waste, the emission of
greenhouse gases and the extraction
of virgin raw materials from nature.
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FEMSA Foundation
FEMSA Foundation26 is our company’s
strategic philanthropic arm that
invests in projects with
a long-term impact.
Since its inception 14 years ago,
the mission of FEMSA Foundation
has been to promote systemic and
sustainable solutions to complex
social and environmental challenges
by making investments that cultivate
shared prosperity for both the current
and future generations, leaving lasting
positive effects on their lives. The work
of FEMSA Foundation complements
FEMSA’s sustainability strategy
through action, while reinforcing the
key message to our stakeholders that
we are By your side, always.
Connect with us:
twitter.com/FundacionFEMSA
www.facebook.com/FundacionFEMSA
www.instagram.com/fundacionfemsa/
www.linkedin.com/company/fundación-femsa/
How we work
1
Ideate
science-based
solutions
2
Drive
collective
action
4
Engage &
empower
communities
3
Monitor &
improve
programs
1.
In each of our initiatives at FEMSA Foundation, we
always launch into collaboration with researchers
and experts to help us hypothesize the right
approach to a problem in a way that is strategic,
data-driven and backed by science. Since 2009,
we have had 26 programs supported by more
than 550 research that includes publications,
articles or patents, etc.
2. We then generate a shared vision of a solution
through collective action across a multi-sector
collaboration platform, inviting a diverse field
of supporters who bring their own levels of
influence, resources and ideas to the table. We
work with more than 750 partner institutions
around the world who are aligned with our
mission and purpose.
3. Next, we monitor our processes and programs
to continuously improve and evolve toward
greater levels of disruptive innovation.
Leveraging the same level of rigor in key
performance metrics that we would use in
FEMSA’s own business is vital to ensuring that
we are achieving the change we aspire reach to
in the region.
4. Finally, we include and engage our communities
to learn from each other, co-design projects,
and empower participants with the resources
they need to become part of the ongoing,
science-based solution. We know that a
“solution” without community input and buy-in is
not a solution at all. We continue this unending
cycle to expand our projects and programming
annually, striving to reach more beneficiaries
and tackle new systemic challenges.
26 FEMSA Foundation is made up of two organizations that share the same purpose: FEMSA Foundation A.C. and Difusión y Fomento Cultural, A.C.
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2022 TOTAL INVESTMENT
20%
2022
80%
Partners
FEMSA Foundation
This work does not come without its
challenges, including difficult decisions
amidst limited resources, political
complexities or unexpected project
outcomes. But we believe that the
careful and caring way we work with
our partners sets us up for the greatest
chance of success in overcoming the
obstacles we may face. In fact, as a
corporate foundation, we believe we
are uniquely positioned to analyze
risks, completely rethink traditional
social, economic and environmental
models, and utilize our capacity to
make bold, long-term investments in
disruptive innovation that can truly
move the needle on progress at a faster
pace than would be possible through
government policy or civil society alone.
In short, we’re taking our strategic
business knowledge and applying it to
social value. During 2022, we benefited
more than 1,450 communities in 47
countries.
FEMSA Foundation 2022 Contributions
Vector27
Water Security
Circular Economy
Early Childhood
Arts & Culture
Strategic Donations
Total
FEMSA Foundation
Investments (US$)
Total
Investment (US$)
2,326,970.0
1,744,199.0
3,329,544.0
158,959.0
233,047.0
7,792,720.0
12,203,349.0
11,769,873.0
12,486,452.0
194,289.0
233,047.0
36,887,011.0
To secure the future we envision, we focus our agenda on four causes that we believe are levers for change:
water security, circular economy, early childhood and arts & culture.
In 2022, FEMSA Foundation leveraged
US$ 3.7 for every dollar invested,
securing a total investment of more
than US$ 36.0 million.
27 FEMSA Foundation’s investments in the Water Security, Circular Economy and Early Childhood vectors come from
FEMSA Foundation A.C., and investments in the Arts & Culture vector comes from the Difusión y Fomento Cultural, A.C. budget.
69
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Water Security
Latin America is a region abundant
in natural resources, however, the
region faces major water challenges
since it is unevenly distributed across
the territory. In addition, many of the
cities in the region, which are amongst
the most urbanized, are in places with
low water availability. We believe that
science and innovation are critical to
support the urgent decision-making
processes we need to thrive. Thus,
FEMSA Foundation works to create
and promote projects that promote
solutions that satisfy domestic,
economic, urban, environmental
and resiliency needs so that the
communities can achieve water security.
Programs include:
Alianza Latinoamericana de Fondos de Agua: First
launched in 2011, FEMSA Foundation co-founded the
Latin American Water Funds Partnership (LAWFP), with
the Interamerican Development Bank (IDB), The Nature
Conservancy (TNC), The Global Environment Facility (GEF)
and the International Climate Initiative (IKI). Together,
we have strengthened and further developed the Water
Fund Model (WFM), a platform to contribute to water
security in Latin America and the Caribbean. To date, 30
Water Funds have been launched in nine countries of the
region. This year’s programs reached more than 65,540
new beneficiaries and conserved approximately 115,940
new hectares. Looking ahead, two more Water Funds are
expected to launch in 2023.
Effects for a Cause: Agents of Change
“My family is very proud of me because I’m an agent of
change. My children saw a change in me that I sometimes
don’t feel, but they do.”
Alma Georgina Trejo,
Community member and Lazos de Agua beneficiary,
San Luis de la Paz, Guanajuato
Lazos de Agua: Since 2016, FEMSA Foundation has
partnered with One Drop, IDB and The Coca-Cola
Foundation to contribute to the empowerment of
communities by improving access to water, sanitation and/
or hygiene (WASH), in a sustainable way with an innovative
approach that combines the OneDrop’s Model A·B·C for
SustainabilityTM (or Access, Behavior change and Capital)
and the Social Art for Behavior Change™ (SABC) approach.
During 2022, the program benefited more than 55,000
new people from 56 communities of Colombia, Mexico,
Nicaragua and Paraguay with sustainable access to WASH,
of which approximately 33,000 also participated in SABC
activities. Besides this, the program exceeded its total goal
by enabling access to safe water and improved sanitation
for more than 235,000 people in Colombia, Guatemala,
Mexico, Nicaragua and Paraguay. More than 188,000 also
participated in SABC, in addition to the access to water
and/or improved sanitation program. Looking ahead to
2023, we plan to extend the project to achieve greater
scale and impact.
Watch more about the stories of the community
members who participated in the Guanajuato
Project from Lazos de Agua.
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Circular Economy
According to the World Bank, at least
a kilogram of waste is generated per
person, per day in our world today –
and there are approximately 667 million
inhabitants in Latin America alone. In
support of the circular economy in
regions where we have a presence,
we focus on understanding how we can
stop the post-consumption leakage of
waste into the environment (particularly
at the collection and disposal stages)
by identifying solutions that support
a clean and healthy environment
for current and future generations.
For example:
In 2022, FEMSA Foundation was proud to join with the
Sociedad Sostenible A.C. (SOSAC), NOAA, WWF, DistritoTec,
Tecnológico de Monterrey, and other institutions,
companies, national governments and civil society
organizations in the collaborative project, Arroyo Vivo, an
inclusive remediation and recycling model for Campana
Altamira and DistritoTec in Monterrey, Nuevo León, a
community near the Arroyo Seco watercourse. The area
has long suffered from illegal waste dumping, which is
detrimental to both the ecosystem and the community,
and was originally identified for remediation as part of the
Alliance for Climate Action Mexico. During 2022, with the
participation of more than 430 volunteers, we collected
approximately 4.2 tonnes of waste and 87 tonnes of rubble
from the river basin.
Effects for a Cause:
A Future Without Waste Begins Today
“When I learned about the Puntos Limpios program,
I looked for a way to bring it closer to the community by
going beyond just my own neighborhood and getting
the students I teach involved – asking them to apply their
knowledge about the environment in which we all live.”
Filiberto Pat,
Sixth Grade Teacher and Community Leader,
Tulum, Mexico
Watch more about how citizens of Tulum like Filiberto
came together in 2022 with their neighbors to ensure
the success of the Puntos Limpios Tulum program.
Informal workers in the waste management system are
often among the most marginalized people in society,
yet they play an essential role in recovering waste that
would otherwise pollute the environment. In collaboration
with the Inclusive Waste Recycling Consortium
(iWrc) in Brazil and Colombia, in 2022 we promoted a
project to strengthen the inclusiveness of this informal
sector by developing and promoting a marketplace
that connects them with companies that buy recovered
materials at a fair-trade price and by providing training
to certify collectors according to the Social Accountability
International SA800 Standard. As of 2022, 86 waste-
picking cooperatives employing approximately 4,685 waste
collectors have the capacity to recover more than
130,000 tonnes of waste from the environment.
In cooperation with Tulum Sostenible, among other
partners, such as NGOs and members of the public and
private sectors, we completed the first phase of the Puntos
Limpios Tulum program with the installation of 12 collection
points for recyclable materials in 12 neighborhoods
in Tulum, Quintana Roo, Mexico. During the year,
4,200 community members were trained in awareness
workshops, received educational material and 19 tonnes
of waste were collected and recycled.
71
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Early Childhood
Our vision is for all children to achieve
their maximum developmental potential
and transform their communities.
To do this, we invest in the physical,
cognitive, linguistic and socio-emotional
development of Latin American children
from gestation through age six.
Our strategy is to nurture early
childhood solutions in three ways:
through caregiving, in our public
spaces and communities, and through
private and public policies.
Nurturing Care
Utilizing unique educational tools,
content, training and support services,
we seek to strengthen the skills and
competencies of parents and caregivers
to improve their interactions with
their children and create the best
environment. For example:
For the last five years, we have supported ¡Listos a Jugar!,
Nurturing Communities
a cross-platform educational program created by Sesame
Workshop in collaboration with other partners, to promote
healthy habits in preschool children related to eating,
playing and personal care. To date, the program has been
developed and implemented in three phases using digital
technology tools to bring useful media content to children
in 13 Latin American countries through episodes and
songs starring Sesame Street characters. In 2022, as part
of a new phase in collaboration with more than 30 experts
from four countries, we strengthened the materials to
promote positive parenting and further develop key skills.
The new campaign reached an estimated twelve million
people, including 150 educational centers that serve more
than 300,000 children and 700,000 parents and caregivers.
We joined with key partners, including Impactus Ventures,
United Way, Fundación Mustakis and others, in sponsoring
the Childtech Challenge 2022, a competition that
recognizes the most promising tech-based solutions
for the development of children and adolescents. After
reaching 110,000 people on social media and receiving
applications from start-up companies in 26 countries,
three winners were selected – Beereaders, Storybook and
Matific – for the positive educational and socio-emotional
impact their tools are making for children across Latin
America. Congratulations to these winners, each of whom
received up to US$ 30,000 for the implementation of
their technology-based projects with high social impact in
conjunction with partner organizations.
Learn more about
Childtech Challenge
Since the healthy development of
children not only benefits themselves
but also the surrounding communities
and society at large, we are committed
to promoting stimulating public spaces
where children can feel safe and spend
quality family time. We work closely
with 11 national and international
partners, including Urban95, a regional
platform of early childhood urban
planners in Colombia, Guatemala and
Chile. Together, we focus our efforts on
two types of interventions: structural/
systemic (which requires a greater
investment and implementation time)
and tactical implementations (quicker to
implement with less investment).
Using these two levers, we strive for all
our projects to feature: participatory
design with clear community input;
strong governance to encourage
effective collaboration; capacity
development opportunities to equip
local leaders with the tools they need;
monitoring and evaluation of results to
assess levels of behavior change; and
sustainability considerations to ensure
safe and green spaces. In 2022, we were
pleased to inaugurate 46 new public
spaces meeting these criteria, which will
serve more than 45,000 children and
their families.
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Nurturing Policies
To influence and position early
childhood on both the public and
private sector agendas in Latin America
in more visible ways, we have two
strategies aimed at promoting the
understanding and awareness of the
importance of putting children at the
center of society.
1. Business and Family Platform: With the objective of
securing better business practices and investment, we
promote collaboration networks between companies to
ensure that they recognize early childhood development
as a key enabler of the wellbeing of their employees and
other communities. In 2022, we worked with key partners
to bring expanded private sector awareness and visibility
around these issues. For example:
Through the Consejo Coordinador Empresarial (CCE or
Business Coordinating Council of Mexico) Early Childhood
Subcommittee that we launched in 2021 (now made up of
53 companies and 10 member organizations), in 2022 we
expanded participation in five different programs to help
guide participants on early childhood best practices.
In support of CENTRO AMÉRICA CRECE’s mission of
improving the quality of early childhood services in
Central and South America, we helped them expand
programming and outreach opportunities. During
2022, the program reached more than one million
people, including children from birth to age six, parents,
caregivers and trained professionals through events,
workshops and webinars.
Pacto por la Primera Infancia: an advocacy initiative
made up of more than 470 organizations with the mission
of calling on the government to make comprehensive
early childhood development a national priority.
Through workshops with 80 private leaders, we raised
awareness on the importance of investing in early
childhood, as supported by research from RedEAmérica,
a network with the objective of supporting sustainable
communities through the transformation of investments
and social practices of companies. Through this research,
we highlighted the role that the business sector and
private policies can play in the region when we strengthen
the ecosystem around early childhood.
2. Public Policies: To position early childhood on the public
agenda in Latin America, we advocate through networks,
and we seek to train advocates for early childhood
by equipping officials and other decision-makers with
the right information they need through alliances with
governments, academia and civil society. During 2022,
we actively participated in the working groups of multiple
networks focused on early childhood, including designing
policies and initiatives in collaboration with governments.
For example:
NiñezYA: a coalition of 200 organizations and civil society
networks is committed to the wellbeing of children by
ensuring the inclusion of children’s rights in government
programs.
Empresas e Primeira Infância Empresas y Primera
Infancia: a platform based in Brazil that enables early
childhood support opportunities for its 72 member
companies through 600 actionable programs across 10
performance areas.
Effects for a Cause:
Inspiring Creators of the Future
“More than being a teacher, what makes me proud is
being able to transform the lives of children. The lesson
that this project has left me with is a strengthening of my
pedagogical experience and the importance of promoting
environments to empower education in children.”
Lida Arreola,
Teacher,
Majagual Sucre, Colombia
La Mojana Transformation, a project in which we adapt aeioTU, an
innovative educational model in community childcare centers, with
a special focus on educators.
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Arts & Culture
A fourth area of focus for FEMSA
Foundation, through Difusión y
Fomento Cultural, A.C., is to engage
communities and to use the arts as a
catalyst for social change and thought-
provoking dialogue. Our Arts & Culture
program has four clear objectives:
Expand the enjoyment of art
without barriers, making it inclusive
and accessible.
Promote empathy, understanding
and emotional recognition of the
experiences of others through art.
Facilitate interactions that promote
a sense of collaboration through art
to achieve collective goals.
Strengthen the art ecosystem in
Latin America.
For more than 45 years, the FEMSA
Collection has sought to promote the
cultural and artistic appreciation of
modern and contemporary artistic
production in Latin America during the
twentieth and twenty-first centuries.
The Collection comprises 1,320 works
from 786 artists, which FEMSA shares
with diverse communities through
exhibitions, a loan program and multiple
cultural activities.
We also seek opportunities to bring art to communities
through spaces for self-reflection and dialogue, in ways that
increase engagement and participation while building empathic
and united communities. For example, during 2022:
At the Festival Internacional Santa Lucía, FEMSA Collection
joined the traveling project “Coincidencias y Disidencias”
to initiate a dialogue featuring masterpieces from Spain’s
Museo Nacional del Prado. Learn more.
We presented Hacer Mundos. Un acercamiento para leer la
Colección FEMSA, an approach to reading and understanding
the FEMSA Collection at the Festival Internacional Cervantino,
the largest cultural festival in Latin America, which celebrated
its 50th anniversary in 2022. Learn more.
We continued sharing El Faro, a methodology that aims
to contribute to creating solutions to the problems that
communities face.
We joined with the International Symposium on
Contemporary Art Theory (SIT_AC) to promote a critical
discussion on contemporary art, specifically as part of
SIT_AC Nodos Bajío, a series of activities designed to
strengthen the art ecosystem and encourage the exchange
between cultural production of the different regions of
Mexico. Learn more.
We presented the documentary Geologías Migratorias
– a project that combines geological knowledge with
migratory mobility – in various festivals around Mexico,
including Tierra Fest in Mexico City, Festival Cortometrajes
del Tecnológico de Monterrey in Guadalajara and Festival
Cuórum in Morelia.
We also organized a special event this year with support from
the Inter-American Development Bank and other partners
with the aim of opening a channel for dialogue between the
public and private sectors to promote key actions and new
financing mechanisms for the cultural
sector. The Forum of Public-Private
Alliances included rich discussions and
workshops that yielded interactive, cross-
cutting dialogues between hundreds
of expert voices from local, national
and international organizations. The
sessions were presented as part of
the 2022 UNESCO World Conference
on Cultural Policies and Sustainable
Development (MONDIACULT), hosted
this year by the Government of Mexico.
MONDIACULT brought together experts
from more than 150 countries with
the aim of shaping a more robust and
resilient cultural sector in alignment
with the principles of sustainable
development, including peace and
security. During 2022, we promoted
11 programs that benefited more than
1.2 million people in communities of
Mexico, Germany, France, Italy and
Switzerland. Learn more.
Effects for a Cause:
Seeing the World through a
New Lens
“We created a workshop so that kids
could understand their community.
To internalize the image, as I call it,
is to enrich yourself in a new way. By
beginning to awaken these types of
situations around your space with
an artistic, photographic and visual
outlook, you start to equip boys and
girls with new sensibilities.”
Thom Díaz,
Photographer, Artist and Teacher,
Monterrey, Mexico
Watch more about the Visual
Documentation Workshop that is
helping kids living in neighborhoods
touched by violence to see things in
new ways and to have a greater
understanding of their community.
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governance
Robust corporate governance is vital to the
responsible management and operation of our
business, ensuring the accountability and alignment
with our stakeholders to create long-term value
through strong economic and social performance.
FEMSA Governance Structure
Board of Directors
Supported by:
Operation
& Strategy
Committe
Corporate
Practices &
Nominations
Committe
Audit
Committe
Company
by-laws
FEMSA
Code of Ethics
Shareholders
Laws &
Regulations
Our People
Our
Community
Our Planet
Executive Team
Internal Regulations
Our governance efforts cover
three priority topics: Corporate
Responsibility, Ethical & Socially
Responsible Behavior and Fiduciary
Responsibility.
Our governance structure is the
foundation for our value creation.
We aim to have the right leaders,
teams, tools, policies and feedback
mechanisms in place across the
organization, with tiered levels of
accountability. Our Board of Directors
is responsible for establishing the
Company’s corporate strategy, and
is supported by its Committees and
FEMSA’s talented executive team,
who is focused on driving sustainable
business growth.
For detailed 2022 data related to Governance,
please see Key ESG Data in the Appendix.
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Corporate Responsibility
FEMSA’s Board of Directors is responsi-
ble for monitoring and managing risks
to the Company, directing corporate
strategy and defining and supervising
the implementation of the Company’s
vision and values. In accordance with
our bylaws and article 24 of the Mexican
Securities Market Law, we are required
to have a Board of Directors with a
maximum of 21 members, at least 25%
of whom must be independent. The
bylaws of the Company also provide
that the holders of the FEMSA B Shares
may elect at least 11 Directors and the
holders of the FEMSA D Shares may
elect 5 Directors. Alternate directors
are authorized to vote in board matters
on the Board of Directors in the event
of absence of the proprietary directors
and may participate in the activities of
the Board of Directors.
FEMSA’s current Board of Directors
was elected at our Annual General
Meeting (AGM) held on April 8, 2022,
and includes 17 directors; 12 were
elected by Series B shareholders and 5
were elected by Series D shareholders.
Directors are appointed for a term
of one year and are eligible for re-
election after the completion of their
term in office. The Board of Directors is
also assisted by one Secretary (non-
member) and one Alternate Secretary
(non-member). José Antonio Fernández
Carbajal has served as Chairman of the
Board of Directors of FEMSA since 2001.
Our bylaws provide that the Board of
Directors shall meet at least once every
three months and the resolutions of the
board of directors must be approved
by at least a majority of the directors
present and voting. During 2022,
FEMSA’s Board of Directors met six
times – with an average board meeting
attendance of 98.03% – to discuss
our operating results and strategic
objectives.
We believe that each of the directors
bring unique areas of expertise and
wide-ranging professional experience
to FEMSA. We periodically review
and evaluate our governing bodies,
including boards and committees,
for compliance with corporate
governance best practices in terms
of structure, operation, diversity
and experience in order to manage
their performance. The Board of
Directors periodically performs a
self-assessment to help the board’s
governance performance and
practices.
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In 2022, FEMSA announced the following actions and
commitments to enrich its corporate governance:
Increasing Oversight Role of Independent Directors
on Key Committees
Governance priorities post-2022
Strengthening Board Accountability to Shareholders
The Audit Committee and the Corporate Practices
and effectiveness by:
Continue enhancing the Board’s independent oversight
Shareholders will have the ability to vote on directors
individually, rather than as a slate.
Increasing Influence of Independent Directors
Continue refreshment and right-sizing of FEMSA’s Board,
reducing Board size to a target range of between 14 and
15 directors by 2023, a decrease from 18 directors in 2021,
and 21 directors in 2018.
By 2023 and once our target size is met, independent
directors will comprise no less than 40% of the Board.
1. Balancing institutional knowledge with fresh perspective
by adding new independent directors.
2. Adding additional expertise on relevant new-business
areas such as Digital and E-commerce, Sustainability
among others.
3. Further enhancing Board gender diversity beyond our
current level of 22%, and relevant ESG expertise in line
with FEMSA’s focus on, commitment to, and leadership of
ESG initiatives critical to our success.
Ensure Board focus and responsiveness by adopting limits
on directors outside board commitments.
Bolster outreach to shareholders to continue to gather
their input as we further enhance our governance.
Committee will continue to support the Board of Directors
by providing vital independent oversight in their respective
areas of focus.
In addition, as part of our Board renewal process, the
Corporate Practices Committee has been renamed
renamed Corporate Practices and Nomination Committee,
and will expand oversight to add to its responsibilities the
following:
1. Evaluation and nomination of candidates for Series D
directors,
2. Appropriate board composition by ensuring the board
includes directors with the skills, experiences and capa-
bilities required to provide effective oversight, and
3. Provide to shareholders a summary of the evaluation and
nomination process for directors.
The Strategy and Finance Committee will add independent
operational oversight to its purview (and has been
renamed the Operation and Strategy Committee):
1. A majority of the Committee will be independent directors.
2. The Committee will provide specific oversight on
transformational initiatives, further increasing the
involvement and time commitment of directors on
operational matters and complementing the role of
Senior Management.
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Board of Directors
The following information summarizes the current composition of our Board of Directors:
Series B Directors
José Antonio Fernández Carbajal B
Executive Chairman of the Board of Directors of FEMSA
Appointed to the Board: 1984 and as
Chairman of the Board since 2001.
Alternate: Federico Reyes García B
Bertha Paula Michel González
Professor at Universidad Nacional Autónoma de México
(“UNAM”)
Appointed to the Board: 2020
Alternate: Maximino José Michel González
Francisco Javier Fernández Carbajal B
Chief Executive Officer of Servicios Administrativos
Contry, S.A. de C.V
Appointed to the Board: 2005
Alternate: Javier Astaburuaga Sanjines B
Eva María Garza Lagüera Gonda
Private investor
Appointed to the Board: 1999
Alternate: José Antonio Fernández Garza Lagüera B
Mariana Garza Lagüera Gonda
Private investor
Appointed to the Board: 2005
José Fernando Calderón Rojas†
Chief Executive Officer and chairman of the board of directors
of Franca Servicios, S.A. de C.V., Servicios Administrativos de
Monterrey, S.A. de C.V., Regio Franca, S.A. de C.V., and Franca
Industrias, S.A. de C.V.
Appointed to the Board: 1984
Alternate: Francisco José Calderón Rojas
Alejandro Baillères Gual
Chairman of Grupo Bal
Appointed to the Board: 2022
Alternate: Arturo Fernández Pérez
Ricardo Guajardo Touché B, C, I
Independent consultant
Appointed to the Board: 1995
Paulina Garza Lagüera Gonda
Private investor
Appointed to the Board: 2004
Alternate: Bárbara Garza Lagüera Gonda
Robert Edwin Denham B, C, I
Partner at Munger, Tolles & Olson LLP
Appointed to the Board: 2001
Michael Larson B, I
Chief Investment Officer for William H. Gates III.
Appointed to the Board: 2011
Alfonso Garza Garza
Private investor
Appointed to the Board: 2016
Alternate: Juan Carlos Garza Garza
For more information, including the edu-
cation, relevant experience and additional
significant positions of our board members,
please see Form 20-F 2022.
Series D Directors
Ricardo Ernesto Saldívar Escajadillo B, C, I
Private investor
Appointed to the Board: 2015
Alfonso González Migoya A, I
Business consultant
Appointed to the Board: 2017
Enrique F. Senior Hernández B, I
Managing Director of Allen & Company, LLC
Appointed to the Board: 2022
Víctor Alberto Tiburcio Celorio A, I
Independent consultant
Appointed to the Board: 2018
Jaime A. El Koury I
General Counsel of the Financial Oversight and Management
Board for Puerto Rico, a governmental entity created in 2016
under U.S. federal statute
Appointed to the Board: 2022
Series D Independent Alternate Directors
Michael Kahn B, I
Francisco Zambrano Rodríguez A, I
Secretary
Alejandro Gil Ortiz
General Counsel and Secretary of the Board of Directors
(Non-member)
A Audit Committee
B Operations and Strategy Committee
C Corporate Practices
and Nominations Committee
I Independent Director
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Director
Age
Gender
Appointed
Attended/Total
Board meetings
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
B
s
e
i
r
e
S
D
s
e
i
r
e
S
José Antonio Fernández Carbajal
Francisco Javier Fernández Carbajal
Eva María Garza Lagüera Gonda
Mariana Garza Lagüera Gonda
José Fernando Calderón Rojas†
Francisco José Calderón (alternate director)
Alfonso Garza Garza
Bertha Paula Michel González
Alejandro Baillères Gual
Ricardo Guajardo Touché
Paulina Garza Lagüera Gonda
Robert Edwin Denham
Michael Larson
Ricardo E. Saldívar Escajadillo
Alfonso González Migoya
Enrique F. Senior Hernández
Víctor Alberto Tiburcio Celorio
Jaime A. El Koury
69
67
64
52
68
56
60
58
62
74
51
77
63
70
78
79
72
69
Male
Male
Female
Female
Male
Male
Male
Female
Male
Male
Female
Male
Male
Male
Male
Male
Male
Male
2001
2005
1999
2005
1984
2005
2016
2020
2022
1995
2004
2001
2011
2015
2017
2022
2019
2023
6/6
6/6
6/6
6/6
6/6
5/6
6/6
6/6
6/6
6/6
6/6
6/6
6/6
6/6
6/6
6/6
5/6
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Board Committees
Audit Committee
Operations & Strategy
Committee
Corporate Practices &
Nominations Committee
Our Board of Directors is supported by
three committees with different areas
of responsibility and oversight of the
management of FEMSA’s impacts on
the economy, environment and peo-
ple. According to their respective areas
of focus, these committees provide
expert advice and recommendations on
strategic issues critical to the success of
the Company. The current members of
each board committee were elected at
our AGM on April 8, 2022. Learn more.
Víctor Alberto Tiburcio Celorio,
Chairman
José Antonio Fernández Carbajal,
Chairman
Ricardo E. Saldívar Escajadillo,
Chairman
Responsible for:
(1) reviewing the accuracy and integrity of
quarterly and annual financial statements
in accordance with accounting, internal
control and auditing requirements,
including the submission of confidential,
anonymous complaints from employees
regarding questionable accounting or
auditing matters; (2) the recommendation
of the appointment, compensation,
retention and oversight of the
independent auditor, who reports directly
to the Audit Committee; and (3) identifying
and following-up on contingencies and
legal proceedings.
The members are:
Victor Alberto Tiburcio Celorio,
Alfonso González Migoya, and
Francisco Zambrano Rodríguez
Responsible for:
(1) preventing or reducing the risk of
performing operations that could damage
the value of our company or that benefit
a particular group of shareholders; (2)
evaluating and nominating candidates
for Series D directors; (3) overseeing
appropriate board composition by
ensuring the board includes directors with
the skills, experiences and capabilities
required to provide effective oversight;
(4) approving policies related to the use
of Company assets or transactions with
related-party transactions; (5) approving
the compensation of the Chief Executive
Officer and relevant officers; and (6)
supporting the Board of Directors in
the preparation of reports on accounting
practices.
The members are:
Ricardo E. Saldívar Escajadillo
Ricardo Guajardo Touché
Robert Edwin Denham
Responsible for:
(1) evaluating the investment and
financing policies of our company; (2)
evaluating the risk factors to which
our company is exposed, as well as
evaluating its management policies;
(3) making recommendations on our
dividend policy; (4) strategic analysis
and assessment of our business units
and strategic alternatives for their
growth; (5) providing specific oversight
on transformational initiatives, further
increasing the involvement and time
commitment of directors on operational
matters and complementing the role
of Senior Management; and (6) making
recommendations to our board of
directors on annual operation plans and
strategic projects for our business units.
The members are:
José Antonio Fernández Carbajal
Francisco Javier Fernández Carbajal
Federico Reyes García
Ricardo Guajardo Touché
Javier Gerardo Astaburuaga Sanjines
José Antonio Fernández Garza Lagüera
Robert Edwin Denham
Michael Larson
Enrique F. Senior Hernández
Ricardo E Saldívar Escajadillo
Michael Kahn
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Executive Team
The FEMSA executive team is focused
on the daily management of our compa-
ny, executing on the implementation of
our corporate strategy, driving business
growth and creating economic, social
and environmental value for all our
stakeholders. Each of our leaders has
significant professional experience with-
in the industries related to our business.
José Antonio Fernández Carbajal
Executive Chairman of the Board
of Directors of FEMSA
He began his career at FEMSA in 1988, serving in
Daniel Alberto Rodríguez Cofré
Chief Executive Officer of FEMSA
He joined FEMSA in 2015 as Chief Financial
and Corporate Officer before being named the
Gerardo Estrada Attolini
Vice-President of Administration and
Corporate Control of FEMSA
He joined FEMSA in 2000 and was appointed to
various positions, including CEO of OXXO. He was
Chief Executive Officer of FEMSA Comercio in
his current position in 2020. Previously, he served
appointed CEO of FEMSA in 1995 and Chairman
2016. He was appointed to his current role as of
as Chief Financial Officer of FEMSA Cerveza and
of the Board in 2001, serving in both positions
January 1, 2022. Prior to joining the Company, he
Corporate Finance Vice President of FEMSA. Prior
until January 2014 when he was appointed
was CFO and then CEO of CENCOSUD (Centros
to FEMSA, he served in various executive level
Executive Chairman of the Board of Directors
Comerciales Sudamericanos S.A.), among other
positions in the finance functions of Mexican
of FEMSA. He is also Chairman of the Board of
senior finance and management positions in
companies in the financial and industrial sectors.
Coca-Cola FEMSA. Currently, he also participates
Latin America and Europe. He holds a forest
He holds an Accounting degree and an MBA from
as a board member of Industrias Peñoles and is
engineering degree from Austral University of
Tecnológico de Monterrey.
member of the Board of Global Advisors of the
Chile and an MBA from Adolfo Ibañez University.
Council for Foreign Relations.
In 2017, he was elected as a fullterm member
of Massachusetts Institute of Technology (MIT),
Francisco Camacho Beltrán
Chief Corporate Officer of FEMSA
He joined FEMSA in 2020 after a long track record
where he contributes the Student Life and
in senior management positions in consumer
Alfonso Garza Garza
Chief Executive Officer of FEMSA
Strategic Businesses
(until 2022)
He joined FEMSA in 1985 and held various
Undergraduate Education committees. He
product companies around the world, including
positions including CEO of FEMSA Empaques.
completed his second term as President of the
Procter & Gamble and Revlon. In 2000, he joined
He is President of the Fondo Ambiental
Council of Tecnológico de Monterrey in February
Danone as head of its Bonafont water operations
Metropolitano de Monterrey, and until 2022 was
2023, and due to his commitment to education,
in Mexico. For the next 20 years, he held varying
Vice Chairman of the Economic Development
he remains an advisor and professor at the same
responsibilities in the water and dairy segments,
of the Mexican Employers’ Confederation
institution. He holds an Industrial Engineering
while driving growth and innovation. In 2011,
(COPARMEX). He is a member of the Board of
degree and an MBA from Tecnológico de
he became a member of Danone’s Executive
Directors of FEMSA, Tecnológico de Monterrey,
Monterrey.
Committee, leading the Global Customer Team and
Grupo Nutec, S.A. de C.V. He graduated
serving as Corporate Chief Growth and Innovation
Officer. He was EVP and global head of the Essential
from Tecnológico de Monterrey in Industrial
Engineering and earned an MBA from IPADE
Dairy and Plant Based business and responsible
Business School. Effective January 1, 2023,
for Global Industrial Operations and Supply Chain
Constantino Spas who was the Chief Financial
He holds a Computer Systems degree and an MBA
Officer in Coca-Cola FEMSA , is appointed as
from Tecnológico de Monterrey.
Chief Executive Officer of Strategic Businesses
of FEMSA.
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Roberto Campa Cifrián
Vice-President of Corporate Affairs
of FEMSA
He joined FEMSA in 2019, after a long career
Raymundo Yutani Vela
Vice-President of Human Resources
He was appointed Director of Human Resources
Daniel Belaúnde Arnillas
Chief Executive Officer of FEMSA Health
He assumed the role of Chief Executive Officer,
at FEMSA in 2018. He joined FEMSA Comercio
Health, in 2022, following his role as CEO of
in the public, private and social sectors. He has
in 1999 as Director of Human Resources, a
Socofar, S.A. since 2016. He brings to this role
served in the federal government of Mexico
position he held until 2014. Between 2014 and
more than 25 years of experience in global
Updates as of January 2023
Ian Craig
Chief Executive Officer of
Coca-Cola FEMSA (as of January 1, 2023)
He joined Coca-Cola FEMSA in 2003. With over
as Secretary of Labor and Social Welfare,
2018, he was Director of Human Resources at
companies across three different markets: retail
27 years of experience in the beverage
Undersecretary of the Interior and Head of the
Coca-Cola FEMSA. Before joining the Company,
banking, retail-fashion and the pharmaceutical
industry, he previously served in several senior
Federal Consumer Protection Agency. He has
he was Director of Human Resources North at
industry. Prior to FEMSA, he supervised
management positions at Coca-Cola FEMSA,
also served as a representative in the Mexico
Banca Serfín, today Santander. He is a graduate
business units in multiple countries, including as
including as Director of Operations for the Brazil
City Legislative Assembly and as a federal
of the Public Accountant career and has a
general manager at Ripley Perú (2012-2016); as
Division from 2016 to 2022, and previously Chief
congressional representative. He holds a law
Master’s degree in Business Administration from
operations manager at Ripley Chile (2008-2012);
Operating Officer of Argentina, CFO and Strategic
degree from Universidad Anáhuac, where he is
the Regiomontana University. Additionally, he
and as commercial bank manager at Banco
Planning Director of South America Division,
also a professor of macroeconomic theory and
completed the AD1 program at IPADE and is
Santander Chile (1996-2008). He completed
CFO, Planning and Corporate Affairs Director of
President of the Federation of Student Societies.
certified as a Coach by Newfield Consulting.
his studies in economics at the Universidad del
Mercosur Region, and Corporate Finance and
John Anthony Santa Maria Otazua
Chief Executive Officer of
Coca-Cola FEMSA (until 2022)
He was appointed to this position in 2014. He
Carlos Arenas Cadena
Chief Executive Officer of
Proximity Division
He began his career at FEMSA in 1984 and
joined Coca-Cola FEMSA in 1995 and has served
joined FEMSA Comercio in 2001 as Strategic
Pacífico in Lima, Peru.
José Antonio Fernández
Garza-Lagüera
Chief Executive Officer of Digital@FEMSA
He began his career in FEMSA Retail operations
Treasury Director of Coca-Cola FEMSA. He has a
Bachelor’s degree in Industrial Engineering from
Tecnológico de Monterrey, an MBA from the
University of Chicago Booth School of Business,
and a Master’s degree in International Commercial
Law from Tecnológico de Monterrey.
in several senior management positions since
Planning Manager. In 2007, he was promoted
in 2018 as head of Strategic Planning for OXXO
then, including COO of the Company’s Mexico
to the head of FEMSA Comercio’s Planning and
Mexico. Prior to that, he ran Coca-Cola FEMSA’s
Division, and Strategic Planning and Commercial
Information Technology Department, followed
Central America division from 2015 to 2018. He
Development Officer. He earned a Bachelor’s
by the Supply Chain Department for OXXO, and
also served as CEO of FEMSA’s plastics division,
degree and an MBA with a major in Finance from
later the Commercial Department of OXXO.
Plásticos Técnicos Mexicanos and head of sales
Southern Methodist University. Effective January 1,
In January 2016, he was appointed Director
and operations in México City at HEINEKEN México.
Constantino Spas
Chief Executive Officer of FEMSA
Strategic Businesses
(as of January 1, 2023)
He was the Chief Financial Officer of Coca-Cola
2023, Ian Craig who was Chief Operating Officer of
General of OXXO Mexico and assumed his
Prior to his work at HEINEKEN, he co-founded
FEMSA until December 2022. He has 24 years of
Coca-Cola FEMSA’s Brazil Division, is appointed as
current role as of January 1, 2022. Up until 2020,
and ran Vestige Capital, a search fund based in
experience in the food and beverage sector in
Chief Executive Officer of Coca-Cola FEMSA.
he participated in the National Association of
Mexico seeking to acquire and operate small and
companies such as Grupo Mavesa and Empresas
Self-Service and Department Stores (ANTAD) in
medium-sized companies in Mexico. While at
Polar in Venezuela, Kraft Foods, SAB Miller in
Mexico and continues to be a member of the
International Council and the Latin American
Vestige, he co-led the acquisition of BOMI Group
de México a third-party logistics provider for the
Latin America and Bacardi y Compañía S.A. de
C.V. in Mexico, holding different positions in
Council of the Association For Convenience
Mexican healthcare industry. He has taught a
marketing, as regional officer and as VP Managing
& Fuel Retailing (NACS). He graduated with
class on entrepreneurship and was the founding
Director. He holds a Bachelor’s Degree in Business
a degree in Computer Science from the
chairman of the board of the Entrepreneurship
Administration from Universidad Metropolitana
Autonomous University of Nuevo León.
Institute in Tecnológico de Monterrey. He received
in Caracas, Venezuela, and an MBA from Emory
his MBA from Stanford University Graduate School
University, Goizueta Business School in Atlanta,
of Business and his Bachelor’s degree in Industrial
Georgia, USA.
Engineering from Tecnológico de Monterrey.
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Sustainability Governance
Since 2005, FEMSA has been a
signatory to the United Nations
Global Compact (UNGC), committing
to aligning our business and strategy
with the UNGC’s Ten Principles, in
particular in the areas of human
rights, labor, environment and
anti-corruption. Internally, we have
teams, processes, forums and
governing bodies dedicated to
defining, managing and promoting
our sustainability strategy. At the
highest level, FEMSA’s sustainability
governance is overseen by the Board
of Directors, who take an active role
in integrating the management of
material ESG risks and opportunities
into the core business strategy, in
alignment with the Company’s vision
and values.
Our executive team is responsible
for implementing our sustainability
strategy and managing ESG risks
and the Company’s impacts on the
economy, environment and people,
and they provide regular updates to
the Board on these topics. Our C-suite
level Sustainability, Inclusion & Diversity
Committee, co-led by the Chairman
of the Board and the Corporate
Director, was established in 2021
and is comprised of the Director-level
representatives of each business unit at
FEMSA. The Committee meets quarterly
to consolidate the diverse sustainability
efforts across the organization and to
strengthen the line of accountability
for ESG management. Key agenda
items during 2022 included approving
the expanded scope of FEMSA’s
2030 sustainability goals, supporting
the ongoing preparations of our
climate-related financial disclosures,
and establishing a new directive to
collect sustainability-related data from
business units in coordination with our
Internal Audit procedures.
FEMSA’s sustainability team is
responsible for formulating, developing
and integrating specific sustainability
considerations, policies and processes
across all FEMSA business units. The
team also advises on and supervises
sustainability performance and
progress against targets, as well as
leads FEMSA’s sustainability reporting
and disclosures. As of the end of 2022,
the sustainability team was led by
Alfonso Garza Garza, Vice President
of Strategic Businesses, who reported
directly to the FEMSA CEO and was a
member of our Board of Directors. As
of January 1, 2023, the Sustainability
team is led by Francisco Camacho,
Chief Corporate Officer of FEMSA.
During 2022, we hosted a second
annual internal Sustainability Summit
in hybrid format (welcoming more
than 150 people in person at our
EOS REPARE plant in San Juan del
Río, Querétaro, Mexico and hosting
another 400+ participants online –
representing all business units and
countries where we operate). With
the theme, Living Our Sustainability
Strategy, FEMSA’s CEO opened the
proceedings and, over two days,
collaborators shared success stories
demonstrating how their teams
and business units are bringing
FEMSA’s sustainability strategy to
life. The Summit helped facilitate
new networking connections across
business units, inspired collaborators
with new ideas and best practices
to bring back to their teams and
motivated everyone to continue
expanding their progress against
FEMSA’s corporate sustainability goals.
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Ethical & Socially Responsible Behavior
To advance ethical and socially
responsible behavior across our
organization, we focus on building
a culture of ethics and legality,
expanding risk management practices
and strengthening sustainability
management.
Our corporate practices comply with
the applicable laws to our operation.
As a publicly listed company in the
Mexican Stock Exchange and the New
York Stock Exchange, we also comply
with all applicable standards, rules
and regulations in Mexico and the
United States, including the Mexican
Securities Market Law and the U.S.
Sarbanes-Oxley Act, as applicable for
foreign issuers. Additionally, we observe
the recommendations of the Code
of Best Corporate Practices of the
Business Coordinating Council (Consejo
Coordinador Empresarial).
Ethics & Legality Culture
Our Code of Ethics (the “Code”) –
which is reviewed annually – is the core
of our corporate behavior and the
foundation of our policies, guidelines
and procedures for responsible business
conduct. The Code establishes the
fundamental principles and standards
that guide our ethical behavior in
relation to our shareholders, customers,
suppliers, authorities, civil society
organizations, the environment,
communities and everyone who interacts
with FEMSA. It also indicates the steps to
follow for reporting any breach, conduct
or practice that does not comply with
the Code and the rest of our Internal
Regulations. The Code, approved by the
Board of Directors, applies to members
of the Board and employees in all the
countries where we operate.
FEMSA’s Supplier Guiding Principles
contains the minimum expectations
that we require of our suppliers in the
areas of human and labor rights, sus-
tainability, lawful culture and informa-
tion security. It is the supplier’s respon-
sibility, in its relationship with FEMSA,
For more on our responsible sourcing
approach, please see page 64.
to adopt the necessary methods and
practices to comply with our Supplier
Guiding Principles.
We also have the following corporate
policies, which are mandatory for all
FEMSA employees, who are subject
to the required controls we have
established to prevent, identify,
investigate, sanction and remedy
any risk of violation or any possible
risks of violation.
Human and Labor Rights
Corporate Policy
Sustainability Corporate Policy
reports investigations. Conflict of
interest attestations are also required
at least every two years from all our
employees.
We have annual trainings for our
employees in connection with anti-
corruption, anti-money laundering,
data protection and conflict of interest,
among other matters.
We also activated a campaign to
communicate FEMSA’s Supplier Guiding
Principles through our newsletter,
COMPARTE, addressed to strategic
suppliers.
Environment Corporate Policy
FEMSA Ethical System
Community Commitment
Corporate Policy
Anti-corruption Corporate Policy
At least every two years our employees
reaffirm their commitment to comply
with FEMSA’s Internal Regulations,
including our Code of Ethics. We also
have annual focused trainings based
on employee function, job level and
geography, including our Ethics &
Compliance Certifications and trainings
for employees responsible for ethics
We believe it is essential to have
a trusted and secure way for our
stakeholders or any other third party
to share a concern or suspicion about
a potential ethics violation. FEMSA’s
Audit Committee has implemented
procedures for receiving, retaining
and addressing complaints regarding
accounting, internal control and auditing
matters, including the submission of
confidential, anonymous complaints
from employees regarding questionable
accounting or auditing matters.
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Climate-Related Risks
& Opportunities
The Sustainability Committee reviews
the sustainability strategy and monitors
key ESG initiatives, goals and metrics,
including climate-related matters. For
example, in 2022, FEMSA, in conjunc-
tion with its business units, prepared
for annual reporting in line with the
requirements of the Task Force on
Climate-Related Financial Disclosures
(TCFD). As a first step, we identified
and quantified the climate-related risks
and opportunities of Coca-Cola FEMSA,
OXXO, OXXO GAS and Solistica.
For more information, please visit
our TCFD Index page 131.
process with a structured approach
that helps them identify, manage and
mitigate current and potential risks.
We utilize risk matrices and other
tools and processes to identify and
manage economic, environmental and
social risks to which our businesses
and brands may be exposed. We have
also set up processes, forums and
governing bodies dedicated to de-
fining, managing and promoting the
FEMSA Sustainability Strategy.
MIRC (Manejo de Incidentes y Resolu-
ción de Crisis) is our overall incident
management and crisis resolution
methodology, which considers identi-
fication, potential impacts, probability
of occurrence, emergency plans and
risk mitigation strategies. MIRC is
established across all the business
units and all levels of the organization.
MARRCO (la Metodología de Atención a
Riesgos y Relacionamiento Comunitario)
is our model for managing risks and
community engagement and aims to
build and maintain effective relations
with local communities by fostering
dialogue and mutually beneficial col-
laboration opportunities.
The FEMSA Ethics Line is a formal,
independent whistleblower mechanism
managed by an independent party
(available 24 hours a day, seven days a
week, 365 days per year) for our stake-
holders to report complaints, concerns,
suggestions or potential breaches of
the Code of Ethics or other internal
regulations. Reports may be submitted
anonymously via confidential commu-
nication channels, including by phone
or website. In 2022, a total of 3,927
reports were received and reviewed of
which 77% were resolved in the same
calendar year. Among other areas, the
reports related to work environment,
operations and financial information.
Risk Management
In a global and constantly changing
business environment, we know risk
management is a strategic and import-
ant issue for our stakeholders. Our
ability to manage risks that arise in the
environment in which we operate is
vital to creating value for our business.
Given the global nature of FEMSA’s
operations in different countries and
regions of the world, our operations
are subject to diverse laws and regu-
lations, and we are exposed to risks
inherent to the sectors in which we
participate. Our business units have
a comprehensive risk management
For more information related to our risk
management process, please visit
our financial filings.
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Fiduciary Responsibility
As part of our responsibility to our
shareholders, we disclose the Compa-
ny’s financial and non-financial results
on a timely basis, in line with regulatory
requirements and expectations. We
also work with independent, third-party
assurance providers to audit our finan-
cial results and verify our sustainability
results in accordance with current stan-
dards. Please see page 139 for our ESG
Independent Limited Assurance Report.
We also focus on achieving sustainable
capital allocation by ensuring that our
investments are aligned with FEMSA’s
Sustainability Strategy and that they
take into consideration material
environmental, social and governance
risks and opportunities.
Protection of Information
& Cybersecurity
At FEMSA, we recognize the importance
of maintaining a robust cybersecurity
system that guarantees data privacy
and the protection of our companies’
and customers’ information. At the
top of FEMSA’s information security
governance model is our Executive
Team, who assumes responsibility for
cybersecurity as a critical management
issue. Our Chief Information Security
Officer (CISO) is responsible for
overseeing FEMSA’s information security
program (based on the U.S. National
Institute of Standards and Technology
Framework for Improving Critical
Infrastructure Cybersecurity). The CISO
advises the Executive Team, Audit
Committee and leads the Information
Security Council (comprised of C-suite
and CISO representatives from FEMSA’s
business units) on critical matters and
liaises regularly with business unit-
level CISOs and information security
committees.
Our investment on the implementation of
security controls and countermeasures
is based on our risk management
and external assessments results and
prioritization, as well as internal and
externals audits. We prioritize threat
deterrence, detection, response planning
and recovery processes to preemptively
protect against any risks. In 2022, we did
not experience any information security
incidents or breaches of personal data.
In the event of a potential breach,
we have multiple cyber intelligence
tools, countermeasures and incident
response processes to maintain
business continuity while quickly and
decisively managing any risks to our
company and our customers. As part of
our governance model, we review our
response plans regularly to incorporate
updates and evaluate their ongoing
effectiveness. As outlined in our
Supplier Guiding Principles, we also
expect any suppliers or other third-
parties we work with to protect and
preserve FEMSA’s personal data and
information assets during their entire
lifecycle, from access to deletion and
destruction.
We have an information security
awareness program for employees
to clearly understand the escalation
process they can follow in any event
that they notice something suspicious.
They can also report concerns or
violations to the FEMSA Ethics Line.
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financial summary
Amounts expressed in millions of Mexican pesos (Ps.) as of December 31.
INCOME STATEMENT
Net sales
Total revenues
Cost of goods sold
Gross profit
Operating expenses
Income from operations1
Other non-operating expenses (income), net
Financing expenses, net
Income before income taxes and share of the profit of equity accounted investees
Income taxes
Share of the profit of equity accounted investees, net of taxes
Net income from continuing operations
Net income from discontinuing operations
Consolidated net income
Controlling interest
Non-controlling Interest
Financial ratios (%)
Gross margin
Operating margin
Consolidated net income
Other information
Depreciation
Amortization and other non cash charges to income from operations
Operative Cash Flow (EBITDA)
Capital expenditures2
2022
2021
2020
2019
2018
Ps. 671,725
Ps. 554,923
Ps. 490,425
Ps. 504,059
Ps. 468,894
673,202
421,534
251,668
192,252
59,416
1,164
16,380
41,872
14,395
7,266
34,743
–
34,743
23,909
10,834
37.4%
8.8%
5.2%
27,831
5,565
92,812
34,410
556,261
342,548
213,713
161,720
51,993
(2,667)
13,384
41,276
14,278
10,680
37,678
–
37,678
28,495
9,183
38.4%
9.3%
6.8%
25,294
5,135
82,422
24,055
492,966
303,313
189,653
148,150
41,503
7,656
14,911
18,936
14,819
(361)
3,756
–
3,756
(1,930)
5,686
38.5%
8.4%
0.8%
25,006
5,464
71,973
20,893
506,711
315,230
191,481
144,329
47,152
1,573
13,492
32,087
10,476
6,437
28,048
–
28,048
20,699
7,349
37.8%
9.3%
5.5%
23,344
4,944
75,440
25,579
469,744
294,574
175,170
133,594
41,576
874
7,380
33,322
10,169
6,560
29,713
3,366
33,079
23,990
9,089
37.3%
8.9%
6.3%
14,698
4,184
60,458
24,266
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financial summary
Amounts expressed in millions of Mexican pesos (Ps.) as of December 31.
BALANCE SHEET
Assets
Current assets
Equity accounted investees
Property, plant and equipment, net3
Intangible assets,net
Right-of-use asset
Other assets, net
Total assets
Liabilities
Short-term bank loans and current portion of long-term bank loans and notes payable
Current portion of leases
Other current liabilities
Long-term bank loans and notes payable
Long-term lease liabilities
Employee benefits
Deferred tax liabilities
Other non-current liabilities
Total liabilites
Total equity
Controlling interest
Non-controlling interest
2022
2021
2020
2019
2018
Ps. 226,449
Ps. 230,718
Ps. 201,269
Ps. 172,579
Ps. 177,607
103,669
134,001
190,772
83,966
59,958
798,815
18,341
12,095
146,486
173,400
81,222
7,048
6,823
15,599
461,014
337,801
262,604
75,197
107,299
115,147
158,138
56,994
69,204
737,500
4,640
7,306
124,777
185,945
55,049
7,600
6,042
11,024
402,383
335,117
262,601
72,516
98,270
113,106
155,501
54,747
61,955
684,848
8,801
6,772
102,840
179,864
51,536
7,253
6,033
14,562
377,661
307,187
237,743
69,444
97,470
114,513
146,562
52,684
53,733
637,541
16,204
7,387
112,943
101,747
47,292
6,347
6,946
12,924
311,790
325,751
251,989
73,762
94,315
108,602
145,610
–
50,247
576,381
13,674
-
87,790
114,990
-
4,699
5,886
13,800
240,839
335,542
257,053
78,489
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financial summary
Amounts expressed in millions of Mexican pesos (Ps.) as of December 31.
BALANCE SHEET
Financial ratios (%)
Liquidity
Leverage
Capitalization
Data per share
Controlling interest book value4
Net controlling interest income5
Dividends paid6
Series B shares
Series D shares
Number of employees7
Number of outstanding shares8
2022
1.374
1.365
0.38
14.678
1.336
0.566
0.709
2021
1.783
1.201
0.37
14.678
1.593
0.383
0.479
2020
1.803
1.229
0.39
13.288
(0.108)
0.517
0.646
2019
1.336
0.957
0.28
14.085
1.157
0.483
0.604
354,344
17,891.13
320,808
17,891.13
320,618
17,891.13
314,656
17,891.13
2018
1.750
0.718
0.29
14.368
1.341
0.460
0.575
297,073
17,891.13
1 Company’s key performance indicator.
2 Includes investments in property, plant and equipment, as well as deferred charges and intangible assets.
3 Includes bottles and cases.
4 Controlling interest divided by the total number of shares outstanding at the end of each period.
5 Net controlling interest income divided by the total number of shares outstanding at the end of the each period.
6 Expressed in nominal pesos of each period.
7 Includes incremental employees resulting from mergers & acquisitions made during the period.
8 Total number of shares outstanding at the end of each period expressed in millions.
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management discussion & analysis
Audited Financial Results for the twelve months ended December 31, 2022. Compared to the twelve months ended December 31, 2021.
Fomento Económico Mexicano, S.A.B.
de C.V. (“FEMSA”) is a Mexican holding
company. Set forth below is certain
audited financial information for FEMSA
and its subsidiaries (the “Company”
or “FEMSA Consolidated”) (NYSE: FMX;
BMV: FEMSA UBD, FEMSA BD). The
principal activities of the Company are
grouped mainly under the following
subholding companies (the “Subholding
Companies”): Coca-Cola FEMSA, S.A.B
de C.V. (“Coca-Cola FEMSA” or “KOF”),
(NYSE: KOF, BMV: KOFL) which engages
in the production, distribution and
marketing of beverages, a Proximity
Division operating OXXO, a small-
format store chain, OXXO GAS, a
chain of retail service stations, and
Valora, an operator of convenience
and foodvenience formats present in
5 countries in Europe. It also operates
a Health Division, which includes all
drugstores and related operations and
Digital@FEMSA, which includes Spin
by OXXO and OXXO PREMIA, among
other loyalty and digital financial services
initiatives. Additionally, through its FEMSA
Strategic Businesses unit, it participates
in the logistics and distribution industry
through and provides point-of-sale
refrigeration and plastic solutions
to its business units and third-party
clients. The consolidated financial
information included in this annual
report was prepared in accordance with
the International Financial Reporting
Standards (“IFRS”) as issued by the
International Accounting Standards
Board (“IASB”).
The 2022 and 2021 results are stated
in nominal Mexican pesos (“pesos” or
“Ps.”). Translations of pesos into US
dollars (“US$”) are included solely for
the convenience of the reader and are
determined using the noon buying
rate for pesos as published by the
U.S. Federal Reserve Board in its H.10
Weekly Release of Foreign Exchange
Rates as of December 30, 2022, which
was 19.4960 pesos per US dollar. This
report may contain certain forward-
looking statements concerning the
Company’s future performance that
should be considered good faith
estimates made by the Company.
These forward-looking statements
reflect management expectations and
are based upon currently available
data. Actual results are subject to future
events and uncertainties, which could
materially impact the Company’s actual
performance.
FEMSA Consolidated
2022 amounts in millions of Mexican pesos
Total
Revenues
% Growth
vs’22
FEMSA Consolidated
Coca-Cola FEMSA
FEMSA Proximity Americas
FEMSA Proximity Europe
Fuel
Health
Logistics and Distribution
673,202
226,740
233,958
9,809
51,813
74,800
72,539
21.0%
16.4%
17.8%
NA
29.8%
2.4%
49.8%
Gross
Profit
251,668
100,300
97,586
4,599
6,560
21,983
16,165
% Growth
vs’21
17.8%
13.2%
15.9%
NA
24.5%
1.1%
52.9%
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FEMSA’s consolidated total revenues
increased 21.0% to Ps. 673,202 million
in 2022 compared to Ps. 556,261
million in 2021. On an organic28 basis,
total revenues grew 15.5%. Coca-Cola
FEMSA’s total revenues increased
16.4% to Ps. 226,740 million, mainly
as a result of volume growth, revenue
management initiatives, and favorable
price-mix effects. FEMSA Proximity
Americas revenues increased 17.8%
to Ps. 233,958 million, driven by an
average increase of 14.3% in OXXO’s
same-store sales and the addition of
1,027 net new stores during 2022.
Proximity Europe revenues amounted
to Ps. 9,809 million, for the consolidated
period of 2022.29 Fuel revenues
increased 29.8% to Ps. 51,813 million,
driven by an average increase of
22.4% in same-station sales driven by
a 15.2% increase in average volume.
FEMSA Health revenues increased 2.4%
to Ps. 74,800 million, partially offset
by an average decrease of 1.0% in
same-store sales for drugstores, while
reflecting positive trends in our Mexico.
Colombia and Ecuador operations and
stable trends in Chile, partially offset
by the depreciation of the Chilean and
Colombian pesos, against the Mexican
peso, and a demanding comparison
base that benefited from extraordinary
liquidity in Chile and COVID-19 driven
consumption during 2021. The Logistics
and Distribution total revenues
increased 49.8% to Ps. 72,539 million,
reflecting the inorganic expansion of
our distribution platform in the United
States andpositive demand dynamics in
our operations in Latin America.
Consolidated gross profit increased
17.8% to Ps. 251,668 million in 2022
compared to Ps. 213,713 million in 2021.
Gross margin decreased 100 basis points
to 37.4% of total revenues compared
to 2021, reflecting gross margin
contractions at most of FEMSA’s business
units, offset by margin expansion at the
Logistics & Distribution business.
Consolidated operating expenses
increased 18.9% to Ps. 192,252 million
in 2022 compared to Ps. 161,720
million in 2021. As a percentage of
total revenues, consolidated operating
expenses decreased from 29.1% in
2021 to 28.6% in 2022.
Consolidated administrative expenses
increased 26.7% to Ps. 34,486 million
in 2022 compared to Ps. 27,219 million in
2021. As a percentage of total revenues,
consolidated administrative expenses
increased 20 basis points, from 4.9% in
2021 to 5.1% in 2022.
Consolidated selling expenses
increased 17.3% to Ps. 157,340 million
in 2022 as compared to Ps. 134,079
million in 2021. As a percentage of total
revenues, selling expenses decreased
70 basis points, from 24.1% in 2021 to
23.4% in 2022.
Consolidated income from operations
increased 14.3% to Ps. 59,416 million in
2022 as compared to Ps. 51,993 million
in 2021. On an organic30 basis, consol-
idated income from operations grew
11.5%. As a percentage of total reve-
nues, operating margin decreased 50
basis points, from 9.3% in 2021 to 8.8%
in 2022, reflecting margin expansion at
FEMSA’s Proximity, Fuel, and Health Di-
visions, offset by margin contractions at
Coca-Cola FEMSA and FEMSA’s Logistics
& Distribution operations.
Some of our subsidiaries pay manage-
ment fees to us in consideration for
corporate services we provide to them.
These fees are recorded as administra-
tive expenses in the respective business
segments. Our subsidiaries’ payments of
management fees are eliminated in con-
solidation and, therefore, have no effect
on our consolidated operating expenses.
Net financing expenses increased to
Ps. 16,380 million from Ps. 13,384 million
in 2021, reflecting a decrease in interest
expenses, offset by a Ps. 5,043
non-cash, negative swing in foreign
exchange losses, related to FEMSA’s
U.S. dollar-denominated cash position
as impacted by the appreciation of the
Mexican peso.
Income before income taxes and share
of the profit in associate results
increased 1.4% to Ps. 41,872 million in
2022 compared to Ps. 41,276 million
in 2021, reflecting an increase in our
income from operations, offset by lower
other income and the increase in net
financing expenses described above.
Our accounting provision for income
taxes in 2022 was Ps. 14,395 million, as
compared to Ps. 14,278 million in 2021,
resulting in an effective tax rate of 34.6%
in 2022 as compared to 34.7% in 2021.
Consolidated net income was
Ps. 34,743 million in 2022 compared
to Ps. 37,678 million in 2021, reflecting
i) higher income from operations
across our business units; and
ii) a decrease in net interest expense.
These were partially offset by,
i) a Ps. 5,043 non-cash, negative swing
in foreign exchange losses, related
to FEMSA’s U.S. dollar-denominated
cash position as impacted by the
appreciation of the Mexican peso,
ii) a Ps. 3,831 negative swing in other
non-operating expenses which reflect
a demanding comparison base that
28 Excludes the effects of significant mergers and acquisitions in the last twelve months.
29 23 days of October, and the full months of November and December 2022.
30 Excludes the effects of significant mergers and acquisitions in the last twelve months.
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included dividends received from
our investment in Jetro Restaurant
Depot, and; iii) by a decrease in our
participation in associates’ results,
which mainly reflects the results of our
investment in Heineken.
Controlling interest income amounted
to Ps. 23,909 million in 2022 compared
to a loss of Ps. 28,495 million in 2021.
Controlling interest income in 2022
per FEMSA Unit31 was Ps. 6.68
(US$ 3.43 per ADS).
Coca-Cola FEMSA
Coca-Cola FEMSA total revenues in-
creased 16.4% to Ps. 226,740 million in
2022 compared to Ps. 194,804 million
in 2021, mainly as a result of volume
growth, revenue management initia-
tives, and favorable price-mix effects.
These factors were partially offset by a
decline in Coca-Cola FEMSA’s beer rev-
enues related to the transition of the
beer portfolio in Brazil and unfavorable
currency translation effects from most
of its operating currencies into Mexican
pesos. In addition, for 2021, this line
included other operating revenues due
to a favorable determination from the
Brazilian tax authorities, which allowed
the recognition of a deferred tax credit
in Brazil for Ps. 254 million.
Coca-Cola FEMSA gross profit
increased 13.2% to Ps. 100,300 million
in 2022, compared to Ps. 88,598
million in 2021, with a gross margin
contraction of 130 basis points as
compared to 2021 to reach 44.2%.
This gross margin decrease was
driven mainly by a tough comparison
base due to the recognition of an
extraordinary profit of Ps. 1,083 million
during the second quarter of 2021,
related to credits on concentrate
purchased from the Manaus
Free Trade Zone in Brazil, higher
concentrate costs in Mexico, and
higher raw material costs, mainly PET
resin and sweeteners. These effects
were partially offset by Coca-Cola
FEMSA’s top-line growth and favorable
raw material hedging initiatives.
The components of cost of goods
sold include raw materials (principally
concentrate, sweeteners, and
packaging materials), depreciation
costs attributable to our production
facilities, wages and other labor costs
associated with labor force employed
at Coca-Cola FEMSA production
facilities, and certain overhead costs.
Concentrate prices are determined
as a percentage of the retail price of
Coca-Cola FEMSA’s products in local
currency, net of applicable taxes.
Packaging materials, mainly PET resin
and aluminum, and HFCS, used as
a sweetener in some countries, are
denominated in U.S. dollars.
Operating expenses increased 13.6% to
Ps. 69,462 million in 2022 compared
to Ps. 61,195 million in 2021.
Administrative expenses increased
25.0% to Ps. 11,263 million in 2022
compared to Ps. 9,012 million in 2021.
Selling expenses increased 11.6% to
Ps. 57,718 million in 2022 compared
with Ps. 51,709 million in 2021.
Income from operations increased
12.5% to Ps. 30,838 million in 2022
compared to Ps. 27,402 million in 2021.
FEMSA Proximity Americas
Proximity Americas total revenues
increased 17.8% to Ps. 233,958 million
in 2022 compared to Ps. 198,586
million in 2021, reflecting an average
increase in same-store sales of 14.3%.
As of December 31, 2022, there was
a total of 21,458 OXXO stores. As
referenced above, OXXO same-store
sales increased an average of 14.3%
compared to 2021, driven by a 10.7%
increase in average customer ticket,
and by a 3.6% increase in store traffic.
Cost of goods sold increased 19.2% to
Ps. 136,372 million in 2022 compared
to Ps. 114,390 million in 2021. Gross
margin decreased 70 basis points to
reach 41.7% of total revenues. This
decrease reflects the impact from
OXXO’s fast-growing loyalty program,
and a decrease of the contribution of
financial services, partially offset by
a more dynamic commercial income
activity and promotional programs
with our key supplier partners. As a
result, gross profit increased 15.9% to
Ps. 97,586 million in 2022 compared
with 2021.
31 FEMSA Units consist of FEMSA BD Units and FEMSA B Units. Each FEMSA BD Unit is comprised of one Series B Share, two Series D-B Shares and two Series D-L Shares. Each FEMSA B Unit is comprised of five Series B
Shares. The number of FEMSA Units outstanding as of December 30, 2022, was 3,578,226,270, equivalent to the total number of FEMSA Shares outstanding as of the same date, divided by 5.
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Operating expenses increased 12.6% to
Ps. 74,073 million in 2022 compared
to Ps. 65,809 million in 2021. The
increase in operating expenses was
driven by our continued but gradual shift
from commission-based store teams to
employee-based teams; partially offset by
enduring expense efficiencies and tight
expense control.
Administrative expenses decreased
1.3% to Ps. 6,066 million in 2022
compared to Ps. 6,145 million in 2021;
as a percentage of sales, administrative
expenses decreased to 2.6% in 2022.
Selling expenses increased 13.9% to
Ps. 67,842 million in 2022 compared
with Ps. 59,542 million in 2021; as a
percentage of sales, they reached 28.9%
in 2022.
Income from operations increased
27.9% to Ps. 23,513 million in 2022
compared to Ps. 18,387 million in
2021, resulting in an operating margin
expansion of 80 basis points to
reach 10.1% as a percentage of total
revenues for the year, compared with
9.3% in 2021, Reflecting long-lasting
operating efficiencies.
FEMSA Proximity Europe32
Fuel
Proximity Europe total revenues
amounted to Ps. 9,809 million in 2022,
reflecting a sequential traffic and ticket
recovery driven by increased mobility.
As of the end of the period Proximity
Europe had 2,766 points of sale.
Cost of goods sold increased amount-
ed to Ps. 5,210 million in 2022. Gross
margin amounted to 46.9% of total
revenues, reflecting the recovery of
the foodservice category, which has a
structurally higher margin. As a result,
gross profit amounted to Ps. 4,599
million in 2022.
Operating expenses amounted to
Ps. 4,267 million in 2022.
Administrative expenses amounted to
Ps. 1,294 million in 2022; as a percent-
age of sales, administrative expenses
amounted to 13.2% in 2022.
Selling expenses amounted to Ps. 3,112
million in; as a percentage of sales, they
reached 31.7%.
Income from operations amounted to
Ps. 332 million in 2022, resulting in an
operating margin of 3.4% as a percent-
age of total revenues, driven by the
contribution of foodservice as well as
the integration of recent acquisitions.
Fuel total revenues increased 29.8% to
Ps. 51,813 million in 2022 compared
to Ps. 39,922 in 2021, reflecting a
22.4% average increase in same-sta-
tion sales. As of December 31, 2022,
there was a total of 568 OXXO GAS
service stations. As referenced above,
same-station sales increased an
average of 22.4% compared to 2021,
reflecting a 6.2% increase in the aver-
age price per liter, couple with a 15.2%
increase in average volume.
Cost of goods sold increased 30.6%
to Ps. 45,253 million in 2022 com-
pared with Ps. 34,653 million in 2021.
Gross margin decreased 50 basis
points to reach 12.7% of total reve-
nues. Gross profit increased 24.5% to
Ps. 6,560 million in 2022 compared
with 2021.
Operating expenses increased 11.9%
to Ps. 4,310 million in 2022 compared
with Ps. 3,853 million in 2021. This
increase was driven by OXXO GAS’
organic growth partially offset by tight
expense control and increased ex-
pense efficiencies.
Administrative expenses decreased
21.7% to Ps. 227 million in 2022 com-
pared with Ps. 290 million in 2021; as
a percentage of sales, administrative
expenses decreased to 0.4%. Selling
expenses increased 14.4% to Ps. 4,084
million in 2022 compared with
Ps. 3,571 million in 2021; as a percent-
age of sales, selling expenses decreased
100 basis points to 8.0% in 2022.
Income from operations increased
58.9% to Ps. 2,250 million in 2022
compared with Ps. 1,416 million in
2021, resulting in an operating margin
expansion of 80 basis points to 4.3% as
a percentage of total revenues for the
year compared with 3.5% in 2021.
FEMSA Health
FEMSA – Health total revenues increased
2.4% to Ps. 74,800 million in 2022
compared to Ps. 73,027 million in 2021,
driven by an average decrease of 1.0% in
same-store sales for drugstores, reflect-
ing positive trends in our operations in
Mexico, Colombia, and Ecuador, and
stable trends at our Chilean operations,
partially offset by the depreciation of the
Chilean and Colombian pesos, against
the Mexican peso, and a demanding
comparison base driven by extraordinary
liquidity in Chile and COVID-19 consump-
tion, which was offset by the addition of
434 net new drugstores during the peri-
od. As of December 31, 2022, the Health
Division had a total of 4,095 drugstores
across its geographies.
32 Shows the results for the consolidated period which comprises 23 days of October, and the full months of November and December 2022
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Cost of goods sold decreased 3.0% to
Ps. 52,817 million in 2022, compared
with Ps. 51,291 million in 2021.
Gross margin decreased 40 basis
points to reach 29.4% of total revenues.
This was mainly driven by: i) higher
institutional sales in our operations in
Chile and Colombia; and ii) increased
promotional activities in our operations
in South America. These were offset by
improved efficiency and more effective
collaboration and execution with key
supplier partners in Mexico. Gross profit
increased 1.1% to Ps. 21,983 million in
2022 compared with 2021.
Operating expenses increased 0.4% to
Ps. 18,045 million in 2022 compared with
Ps. 17,974 million in 2021. This increase
was driven by the organic growth in
Mexico and South America, partially off-
set by cost efficiencies and tight expense
control throughout our territories.
Administrative expenses decreased
10.4% to Ps. 2,918 million in 2022
compared with Ps. 3,255 million in
2021; as a percentage of sales, they
reached 3.9% in 2022. Selling expenses
increased 3.5% to Ps. 15,139 million in
2022 compared with Ps. 14,620 million
in 2021; as a percentage of sales, they
reached 20.2% in 2022.
total revenues for the year, compared
with 5.2% in 2021, reflecting higher
operating leverage.
Logistics and Distribution
Logistics and Distribution total revenues
increased 49.8% to Ps. 72,539 million,
compared to Ps. 48,412 million in 2021.
Reflecting the inorganic expansion of
our distribution platform in the United
States coupled with positive demand
dynamics in our operations in Latin
America, and effective cross-selling
initiatives at Envoy Solutions operations
in the United States.
Cost of goods sold increased 49.0%
to Ps. 56,374 million, compared to Ps.
37,843 million in 2021. Reflecting the
inorganic expansion of our distribution
platform in the United States offset by
increased fuel expenses. Gross profit
increased 52.9% to Ps. 16,165 in 2022
compared with Ps. 10,569 million in
2021, representing 22.3% of total sales.
Operating expenses increased 55.3%
to Ps. 13,103 million in 2022 compared
with Ps. 8,438 million in 2021 reflecting
strong inorganic growth at our distribu-
tion operations in the United States.
Income from operations increased 4.7%
to Ps. 3,938 million in 2022 compared
with Ps. 3,762 million in 2021, resulting
in an operating margin expansion of 10
basis points to 5.3% as a percentage of
Administrative expenses increased
37.8% to Ps. 6,247 million in 2022,
compared to Ps. 4,533 in 2021; as a
percentage of sales, administrative
expenses decreased to 8.6% in 2022.
Selling expenses increased 68.9%
to Ps. 6,858 million in 2022; as a
percentage of sales, selling expenses
increased to 9.5% in 2022.
Income from operations increased
43.7% to Ps. 3,063 million in 2022
compared with 2,132 in 2021, resulting
in an operating margin contraction of
20 basis points to 4.2% of total sales,
strong inorganic growth at our distribu-
tion operations in the United States.
Key Events during 2022
The following text reproduce our press
releases as they were published.
Coca-Cola FEMSA announces
construction of a new recycling plant
in Mexico
On January 25, 2022, Coca-Cola FEMSA
announced the construction of a new
recycling plant together with ALPLA
México, S.A. de C.V. (“ALPLA”), that will
be known as “PLANETA”, (“Planta Nueva
Ecología de Tabasco”, in Spanish).
PLANETA will be built in Cunduacán, in
the state of Tabasco, between ALPLA, a
global leader in the development and
production of plastic packaging solutions
and Coca-Cola FEMSA. The plant will
have a joint investment between
Coca-Cola FEMSA and ALPLA of more
than US$ 60 million and will operate with
state-of-the-art technology to process
up to 50,000 tons of post-consumption
PET bottles per year, to produce up
to 35,000 tons of food grade recycled
material, ready to be reused. The plant is
expected to start operations during the
first quarter of 2023.
Coca-Cola FEMSA was included for the
second consecutive year in the S&P
Global Sustainability Yearbook 2022
On February 08, 2022, Coca-Cola
FEMSA announced that for the
second consecutive year Coca-Cola
FEMSA was the only Mexican
beverage company included in the
S&P Global Sustainability Yearbook
2022, due to its high performance
in the Corporate Sustainability
Assessment (CSA) from S&P.
This year, more than 7 thousand
companies around the world
were evaluated, and only 15%
of the companies with the best
Environmental, Social, Economic
and Corporate Governance (“ESG”)
performance were selected. From these
companies, more than 700 were in
the beverage sector, Coca-Cola FEMSA
being the only Mexican company in
this sector included in the S&P Global
Sustainability Yearbook 2022, achieving
a score, according to the S&P’s own
evaluation, that makes it stand out as
one of the companies with the best
performance in the beverage sector in
the field of ESG.
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Coca-Cola FEMSA was also the first
Mexican company and the third in
Latin America to obtain approval from
the global Science Based Targets
(SBTi) initiative, for aligning its emission
reduction goals in its operations and
throughout its value chain to the Paris
Agreement. Additionally, in 2021,
considering water as a valuable resource,
the Company, as announced at the
time, placed the first sustainability linked
bonds in the Mexican market, publicly
committing to achieve ambitious goals for
efficient water use.
Coca-Cola FEMSA has the goal of
making all its packaging recyclable
and collecting 100% of the packaging
it places in the market by 2025.
Coca-Cola FEMSA was included for
the second consecutive year in the
S&P Global Sustainability Yearbook
2022. Additionally, Coca-Cola FEMSA
has been included for the fourth
consecutive year in the gender equality
index and for the third time it has been
selected as one of the best places to
work for the LGBTQ+ community, for
promoting policies that favor equality
and the rights of the people who
collaborate in the Company.
Finally, Coca-Cola FEMSA is the only Latin
American company in the beverage
industry included for the fifth year in the
Dow Jones Sustainability MILA Pacific
Alliance Index and for the ninth year in
the Dow Jones Sustainability Emerging
Markets Index, strengthening it as a
world-class benchmark in the beverage
industry for its actions and results, which
have also led it to be included in the
FTSE4Good Emerging Index together
with Fomento Económico Mexicano,
S.A.B. of C.V. and in the new S&P/BMV
Total Mexico ESG Index.
FEMSA’s Envoy Solutions reaches
agreement to acquire Sigma Supply of
North America, expanding its footprint
in the Southern United States
On April 12, 2022, FEMSA announced
that Envoy Solutions (“Envoy”), FEMSA’s
specialized distribution subsidiary
in the United States, reached an
agreement to acquire Sigma Supply of
North America Inc. (“Sigma Supply”), an
independent specialized distribution
company based in Hot Springs,
Arkansas. This transaction represents
another important step in FEMSA’s
strategic path to build a leading
national distribution platform in the
United States. Sigma Supply will add
significant capabilities in packaging
materials distribution, solutions and
services, and it will expand Envoy’s
footprint to include the key state of
Texas while enhancing its presence
across the South to the Mid-Atlantic
region. Sigma Supply’s revenues were
approximately US$ 370 million in 2021.
Coca-Cola FEMSA and the
Coca-Cola System announce
distribution agreement with
Campari Group in Brazil
On April 19, 2022, Coca-Cola FEMSA
announced that its subsidiary Spal
Indústria Brasileira de Bebidas, S.A.
and the Coca-Cola System in Brazil
have signed an agreement to distribute
Campari Group’s (“Campari”) products
in the country. This distribution will
provide for strategically defined actions
for each state or region, especially with
respect to portfolio.
FEMSA and Valora join forces:
A strong foundation to jointly develop
the European market leader in
convenience stores and food service
On July 5, 2022, FEMSA announced
an all-cash offer to purchase all of the
publicly held shares of Valora Holding
AG (Valora) for CHF 260.00 per share.
This was equivalent to a premium of
57.3% to the volume-weighted average
share price of the last 60 trading days
and 52.0% to the Valora closing share
price on July 4, 2022.
Valora; one of the leading foodvenience
platforms with convenience stores
and food service operations in
Switzerland, Germany and other
European countries, announced a
binding agreement under which FEMSA
will launch a public tender cash offer
to acquire all of Valora’s publicly held
registered shares for CHF 260.00 net
per share in cash. Valora will continue
to operate under its own company
name, becoming the retail arm of
FEMSA’s Proximity Division in Europe,
and will take on responsibility for further
developing the European convenience
markets for FEMSA. Valora’s brands and
formats will be retained in accordance
with Valora’s current management’s
expansion and operating plans. FEMSA
will fund the up to US$ 1.2 billion/
CHF 1.1 billion all-cash acquisition with
available cash on hand.
Coca-Cola FEMSA announces
distribution agreement with
Grupo Perfetti Van Melle in Brazil
On July 14, 2022, Coca-Cola FEMSA
announced that its subsidiary Spal
Indústria Brasileira de Bebidas, S.A.
has signed a non-exclusive agreement
to distribute Grupo Perfetti Van Melle
(“Perfetti”) products in its Brazilian
territories. Perfetti, is one of the world’s
largest manufacturers of confectionary
and chewing gum, with global brands
such as Mentos and Fruit-tela.
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Coca-Cola FEMSA announces
successful pricing of the first social
bonds in the consumer sector
in the Americas and sustainability
bonds in Mexico
On October 6, 2022, Coca-Cola FEMSA
announced the successful pricing
of its social and sustainability bonds
in the Mexican market for a total of
Ps. 6,000 million.
The transaction was completed through
a dual-tranche format with the tickers
KOF22S and KOF22X. The first tranche
was priced at a fixed rate of 9.95%
(Mbono+0.30%) for an amount of Ps.
5,500 million due in 7 years; the net
proceeds of this bond will be used to
finance social projects. The second
tranche was priced at a variable rate of
TIIE + 0.05% for an amount of Ps. 500
million due in 4 years. Both issuances
received a credit rating of mxAAA from
S&P Global Ratings S.A. de C.V. and AAA.
mx by Moody’s de México, S.A. de C.V.
The net proceeds of this bond will be
used to finance sustainability projects.
The net resources from these bonds will
be used to finance projects focused on
the development of the communities
in which the Company has a presence
and that respond to their local needs.
Coca-Cola FEMSA has become the
first non-financial corporation in the
Americas and the first company in the
Coca-Cola System to issue a social
bond, making the financing of social
projects available to investors. Among
the outstanding social projects are
support programs that provide entre-
preneurial and self-employment skills,
financial solutions that support store
owners, and investments in sustainable
community development, including
water replenishment projects and water
access in vulnerable communities.
Spin by OXXO obtains authorization
to operate as an electronic payment
entity in Mexico
On October 7, 2022, FEMSA announced
that its subsidiary Compropago S.A.P.I.
de C.V. has successfully completed the
regulatory process required under the
Mexican fintech legal framework and
has been authorized by the Comisión
Nacional Bancaria y de Valores (“CNBV”)
to operate as “Institución de Fondos de
Pagos Electrónico” (“IFPE”).
FEMSA and Coca-Cola FEMSA
Announce Senior Leadership Changes
On October 13, 2022, FEMSA and
Coca-Cola FEMSA announced that
in accordance with their careful and
deliberate senior leadership succession
planning processes, and consistent with
previously established timeframes, John
Santa Maria Otazua will retire from his
position as Coca-Cola FEMSA’s Chief
Executive Officer on January 1, 2023.
Accordingly, Coca-Cola FEMSA’s Board of
Directors has appointed Ian Craig García,
currently CEO of Coca-Cola FEMSA Brazil,
to become Coca-Cola FEMSA’s Chief
Executive Officer as of the same date.
Concurrently, Alfonso Garza Garza will
retire from his position as Chief Execu-
tive Officer of FEMSA Strategic Business-
es on January 1, 2023. Constantino Spas
Montesinos, currently Chief Financial
Officer of Coca-Cola FEMSA, has been
appointed to become Chief Executive
Officer of FEMSA Strategic Businesses
as of the same date.
FEMSA signs agreement to acquire
NetPay, as part of its digital and
financial solutions ecosystem
On November 7, 2022, FEMSA
announced that its subsidiaries have
signed an agreement to acquire all of
the outstanding shares of NET PAY,
S.A.P.I DE C.V. (“NetPay”). NetPay is
a merchant aggregator that offers
several payment services and solutions
to micro, small and medium-sized
businesses in Mexico. In 2019, FEMSA
acquired a minority equity stake in
NetPay and now it has agreed with
NetPay’s majority shareholders
to acquire all of the remaining
outstanding shares of the company,
to take FEMSA’s ownership to 100%.
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2020 Sustainability Linked Bonds
Principles (“SLBP”), as administered
by the International Capital Market
Association, and it includes certain
Sustainability Performance Targets of
the Company which are aligned with its
overall sustainability strategy priorities
for 2030. Per the terms of the Bonds,
the satisfaction of the Sustainability
Performance Targets will be verified by
an accredited third party, and if such
targets are not satisfied on certain
dates, there will be an interest rate step-
up of 25 basis points.
Pursuant to FEMSA’s Sustainability-
Linked Bond Framework, FEMSA
has committed to annually publish
on its website a Sustainability-
Linked Securities update within its
Sustainability Annual Report, which will
include up-to-date information on its
performance with respect to the key
performance indicators.
FEMSA Announces Successful
Sustainability Linked Bond Issuance
in the Mexican Market
On November 15, 2022, FEMSA
announced the placement of Mexican
Peso-denominated sustainability
linked bonds in the Mexican market
for a total of Ps. 9,273,843,400.00.
The transaction was completed through
a dual-tranche format with the tickers
FEMSA 22-2L and FEMSA 22L. The first
tranche was issued at an annual fixed
rate of 9.65% (Mbono+0.45%) for an
amount of Ps. 8,446,384,600.00 due
in 2032. The second tranche was
issued at an annual variable rate
of TIIE28 + 0.10% for an amount of
Ps. 827,458,800.00 due in 2027. This
issuance received credit ratings of
mxAAA from Standard & Poor’s and
AAA (mex) from Fitch Ratings.
The proceeds from this issuance will be
used for general corporate purposes.
Pursuant to the terms of the Bonds,
they are linked to FEMSA’s Sustainability
Linked Bond Framework, which was
adopted and published by the Company
in connection to the 2021 issuance of
its Euro-denominated sustainability
linked notes in the international
capital markets for €700 million in
senior notes due in 2028, and €500
million in senior notes due in 2033.
This Framework is aligned with the
Coca-Cola FEMSA Names Gerardo Cruz
as Chief Financial Officer
On November 29, 2022, Coca-Cola
FEMSA announced that the Board of
Directors has appointed Mr. Gerardo
Cruz Celaya to succeed Mr. Constantino
Spas Montesinos as Coca-Cola FEMSA’s
Chief Financial Officer, effective
January 1, 2023.
Coca-Cola FEMSA recognized once
again as part of the Dow Jones
Sustainability Index
On December 19, 2022, Coca-Cola
FEMSA announced that is has been
included in the Dow Jones Sustainability
MILA Pacific Alliance Index for the sixth
year; and is the only Company in the
beverage industry in Latin America
included for the tenth consecutive
year in the Dow Jones Sustainability
Emerging Markets Index.
Based on the results of a Corporate
Sustainability Assessment (CSA) that
evaluates governance & economic,
environmental, and social criteria,
Coca-Cola FEMSA increased its rating
within the Dow Jones Sustainability
Index as compared to the previous
year by improving its score as a result
of a solid performance in the three
pillars subject to the evaluation,
confirming the Company’s leading
sustainability-driven strategy.
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appendix33
About this Report
The content of this 2022 Integrated
Annual Report is based on FEMSA’s
business strategy and our Sustainability
Strategy Framework, including our
2030 sustainability goals and our most
recent ESG materiality assessments.
This report was developed through
an in-depth consultation process
with relevant subject matter experts
across the organization. The report
was then reviewed by representatives
from each business unit with feedback
incorporated. Our senior management
team reviews the final report prior to
publication.
Reporting Scope
Disclosure Frameworks
In addition to our annual financial
reports, FEMSA has been separately
publishing non-financial results related to
the economic, social, environmental and
governance impacts of our operations
since 2004. Every year, we strive to
continuously improve the transparency
and completeness of our annual
disclosures. For the first time in this year’s
annual report, we are pleased to take
additional steps toward more formally
presenting an integrated picture of
both our financial and non-financial
information. This approach is intended
to provide a balanced view of our
strategy, operational performance
and levers of value creation over the
short-, medium- and long-term.
Specifically, our materiality assessment
(see page 33) directly informed our
report development process, and
as such, this report is organized
according to the pillars of our strategic
sustainability framework and the related
priority topics that our stakeholders
identified as being of highest importance.
We retained Ernst & Young, an
independent entity to verify select
non-financial information in this
report. As such, we include a limited
assurance statement with more
information on the conclusions of this
engagement on page 139.
Our report is presented in alignment with the following
widely accepted disclosure frameworks.
GRI: The Global Reporting Initiative is an independent
standards organization that helps businesses
understand and communicate their economic,
environmental and social impacts related to business
performance.
SASB: The Sustainability Accounting Standards Board is
an independent, nonprofit organization with a mission
to develop and disseminate sustainability accounting
standards that help public corporations disclose
material, decision-useful information to investors.
TCFD: The Task Force on Climate-related Financial
Disclosures is a set of recommendations to enable
stakeholders to better understand the financial
system’s exposures to climate-related financial risks.
UNGC: FEMSA has been a United Nations Global Compact
(UNGC) participant since 2005, and as such, we work to
align our company’s operations and strategies with its 10
principles. This 2022 Integrated Annual Report serves as
our annual UNGC Communication on Progress (CoP).
This report should be read in conjunction with our financial filings, available at
https://femsa.gcs-web.com/. Previous years’ annual reports are available at
https://femsa.gcs-web.com/financial-reports/annual-reports.
33 The information included in the Appendix is provided in good faith and is intended to enhance understanding of the organization’s non-financial performance. Although the information
is believed to be correct at the time of publication, we cannot accept any liability for any loss or damage caused by any person or organization acting or failing to act as a result of the information contained herein.
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Stakeholder Engagement
Stakeholder
Group
Examples of
Communication Channels
Examples of
Topics of Interest
FEMSA Response
Global conferences, meetings,
roadshows
Company quarterly performance
Financial and sustainability
Transparent and timely reporting
Steady and resilient financial
The sentiment of being By your side,
always is perhaps best exemplified
through our approach and commitment
to proactive and meaningful stakeholder
engagement. We understand the
importance of maintaining open
communication channels and feedback
mechanisms with all our stakeholder
groups. The results of these ongoing
interactions are incorporated into
our strategic planning processes and
represent an important vehicle for
helping us to live our sustainability
strategy.
Shareholders
& Investors
Customers
& Consumers
Collaborators
& their Families,
Labor Unions
Community
Suppliers
FEMSA Annual General Meeting
Quarterly results and conference calls
Filings and annual disclosures
FEMSA Ethics Line
Marketing events and expos
Customer satisfaction surveys
B2B and D2C platforms
Website, Contact Us pages, social
media
FEMSA Ethics Line
Organizational Climate Diagnostic
survey
Employee/manager feedback sessions
Website, intranet, emails, Annual Report
Townhall meetings and quarterly/
annual meetings
FEMSA Ethics Line
Partnerships and collaborations
Visits to local plants and operations
MARRCO
Website, social media, Annual Report
FEMSA Ethics Line
Email and content platform:
http://compartefemsa.com/
Supply chain sustainability
assessments and risk management
evaluations, e.g., EcoVadis
Supplier satisfaction surveys
Meetings to assess service levels
FEMSA Ethics Line
performance
performance
Updates on strategic initiatives
Macroeconomic environment concerns
Regulatory compliance
Product quality, pricing, availability
Sustainable products and services
Customer satisfaction and experience
Productivity and efficiency
Supply chain constraints
Career development and training
Compensation/collective agreements
Occupational health and safety
Diversity, equity and inclusion
Community responsibility and
sustainability
Progress against 2030 sustainability
goals
Agile solutions to customer needs
Innovative products and services
Continuous improvement plans
Inclusive recruitment and hiring
practices
Training and upskilling on ESG issues
Safety, health and wellbeing programs
Job opportunities
Sponsorships and donations
Educational and social wellbeing
Social programs in each business unit
Food and monetary donations
Volunteer programs
programs
Compliance with local legislation
Environment, health & safety impacts
of operations
Collaboration opportunities
Compliance on sustainability issues
Supply chain constraints
Sustainable sourcing
Billing and collection
Supplier loyalty programs
ESG training and Scope 3 GHG
reductions
Continuous improvement projects
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Stakeholder
Group
Examples of
Communication Channels
Examples of
Topics of Interest
Regulators
& Business
associations
Civil society
organizations
Media
Educational
institutions
Forums, congresses or conferences
Advocacy initiatives/public-private
alliances
MARRCO
Public policy advisory
FEMSA Ethics Line
Renewable energy/GHG emissions
Changes in legislation
Community development
Safety standards and compliance
Health and wellness
Forums and congresses
Press releases and announcements
Website, social media, Annual Report
MARRCO
FEMSA Ethics Line
Support, donations and sponsorships
Community development
Advocacy and public policy
Healthy lifestyles and the environment
Early childhood
Forums and congresses
Press releases and announcements
Website, social media, Annual Report
MARRCO
FEMSA Ethics Line
Financial information
Products and services
Technology and digital innovation
Sustainability performance
Institutional positioning on key issues
FEMSA Response
Discussions and trainings
Designing policies and initiatives
Compliance with safety standards
and laws
Training and development centers
Crowdfunding platforms
Investment opportunities
Open and transparent communication
Media outreach strategies
Collaboration on communication
initaitives
Events, meetings and dialogues
Outreach programs
Website, social media, Annual Report
Content sharing and project launches
FEMSA Ethics Line
Strategic alliances and support
Donations and sponsorships
Collaboration ideas and opportunities
Joint research initiatives
Collaborative projects
Arts & culture festivals
Key Memberships
& Associations
We seek to build global alliances and
collaboration opportunities through our
associations with like-minded organiza-
tions that further support our mission
of generating economic and social value
through our companies and institutions.
Copyright ©2023 Morningstar Sustainalytics.
All rights reserved. This publication contains
information developed by Sustainalytics
(www.sustainalytics.com). Such information
and data are proprietary of Sustainalytics and/or
its third party suppliers (Third Party Data) and are
provided for informational purposes only. They
do not constitute an endorsement of any product
or project, nor an investment advice and are
not warranted to be complete, timely, accurate
or suitable for a particular purpose. Their use is
subject to conditions available at https://www.
sustainalytics.com/legal-disclaimers.
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key ESG data
ESG Data Table(i)
Unless otherwise indicated, content for 2022 in the data tables below covers the period Jan. 1, 2022 – Dec. 31, 2022.
Our People
Disclosure
Investment
Our People investment (ii)
Our People investment
Employment
Collaborators
Total collaborators
External collaborators
Internal collaborators
Gender
Internal collaborators - Men
Internal collaborators - Women
Age group
Internal collaborators - 18-29 years old
Internal collaborators - 30-50 years old
Internal collaborators - 51-59 years old
Internal collaborators - 60+ years old
Country
Argentina
Austria
Brazil
Chile
Colombia
Costa Rica
Units
$ Million Mexican Pesos
$ Million Dolars
# of collaborators
# of collaborators
# of collaborators
%
%
%
%
%
%
# of collaborators
# of collaborators
# of collaborators
# of collaborators
# of collaborators
# of collaborators
2022
4,100
210
354,346
64,034
290,312
59
41
58
25
16
1
4,222
71
37,566
13,141
22,820
2,001
2021
NA
NA
320,808
66,042
254,766
60
40
62
23
14
1
2,305
-
30,563
12,263
17,238
1,802
2020
NA
NA
323,542
76,415
247,127
62
38
58
25
16
1
2,167
-
30,281
12,069
15,448
1,480
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Our People
Disclosure
Total collaborators
Country
Ecuador
Germany
Guatemala
Luxemburg
Mexico
Netherlands
Nicaragua
Panama
Peru
Switzerland
United States of America
Uruguay
Collective bargaining agreements
Number of unionized collaborators
% of collaborators unionized (iii)
% of unionized collaborators covered by a contract,
pact or collective bargaining agreement
New employee hires
Units
2022
2021
2020
# of collaborators
# of collaborators
# of collaborators
# of collaborators
# of collaborators
# of collaborators
# of collaborators
# of collaborators
# of collaborators
# of collaborators
# of collaborators
# of collaborators
4,519
3,294
3,805
13
4,329
-
3,542
-
4,258
-
3,768
-
252,250
241,835
245,157
13
1,214
1,614
588
1,498
3,996
1,686
-
1,303
1,672
480
-
2,526
894
-
1,135
1,650
530
-
1,306
898
# of collaborators
214,434
186,324
179,086
%
%
74
100
73
100
NA
NA
NA
72
100
NA
NA
NA
Total number of new employee hires during the reporting period
# of collaborators
174,670
Gender
New employee hires - Men
New employee hires - Women
%
%
48
52
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Our People
Disclosure
New employee hires
Age group
New employee hires - 18-29 years old
New employee hires - 30-50 years old
New employee hires - 51-59 years old
New employee hires - 60+ years old
Parental leave
Total number of employees that took parental leave
Employees that took parental leave - Men
Employees that took parental leave - Women
% of employees that returned to work in the reporting period after parental leave
ended
% of employees that returned to work in the reporting period after parental leave
ended - Men
% of employees that returned to work in the reporting period after parental leave
ended - Women
% of employees that returned to work after parental leave ended that were still
employed 12 months after their return to work
% of employees that returned to work after parental leave ended that were still
employed 12 months after their return to work - Men
% of employees that returned to work after parental leave ended that were still
employed 12 months after their return to work - Women
Diversity, Equity and Inclusion (IV)
Employees working at the end of 2022
Total employees 60+ years old
Total employees with disabilities
Total refugee
Units
2022
2021
2020
%
%
%
%
# of collaborators
# of collaborators
# of collaborators
%
%
%
%
%
%
# of collaborators
# of collaborators
# of collaborators
64
31
4
1
4,251
1,041
3,210
86
93
84
73
80
70
4,700
2,000
1,500
NA
NA
NA
NA
NA
NA
NA
NA
9,449
2,312
NA
NA
78
NA
NA
53
NA
NA
NA
NA
97
NA
NA
80
NA
NA
3,000
1,800
475
3,200
930
200
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Our People
Disclosure
Women
% of women in executive positions
% of women in the total workorce (iii)
% of women in senior management positions, i.e. a maximum of two levels below
CEO or comparable positions (as a % of total senior management positions)
Occupational Health and Safety
Worker training on occupational health and safety
Total number of collaborator training hours
Workers covered by an occupational health and safety management system
% of employees who are covered by OHSM system
% of workers who are not employees but whose work and/or workplace is con-
trolled by the organization who are covered by OHSM system
Fatalities as a result of work-related injury
Fatalities of direct employees
Fatalities of third-party collaborators
Injuries as a result of work-related injury
%
%
# of fatalities
# of fatalities
Lost Time Injury Frequency Rate (LTIFR) per 1,000,000 hours of direct employees
LTIFR/million hours
Lost Time Injury Frequency Rate (LTIFR) per 100 employees of direct employees
LTIFR/100 employees
Lost Time Injury Frequency Rate (LTIFR) per 1,000,000 hours of third-party collabo-
rators (contractors) v
Lost Time Injury Frequency Rate (LTIFR) per 100 employees of third-party collabo-
rators (contractors) v
LTIFR/million hours
LTIFR/100 employees
Work-related illness incidence
Work-related illnesses incidence rate per 1,000,000 hours of direct employees
Illnesses/million hours
Work-related illnesses incidence rate per 100 employees of direct employees
Illnesses/100 employees
Units
%
%
%
2022
27
41
16
2021
24
40
NA
2020
20
38
NA
# of hours
645,626
490,481
712,488
100
100
2
8
5.38
1.34
3.75
0.02
0.08
0.02
100
100
1
3
6.03
1.53
NA
NA
0.05
0.01
100
100
NA
NA
4.9
1.25
NA
NA
0.09
0.02
NA
Investment in Occupational Health and Safety
Total investment in occupational health and safety
$ Million Mexican Pesos
1,758
NA
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Our People
Disclosure
Training and Education
Investment in collaborator training
Total hours of training for employees (vi)
Employee category – Hours of training
Directors
Management
Employees
Unionized
Outsourcing
Interns
Store leaders
Commission agents
Units
$ Million Mexican Pesos
# of hours
# of hours
# of hours
# of hours
# of hours
# of hours
# of hours
# of hours
# of hours
Average hours of training per year per employee
# of hours-employee/year
Programs for upgrading employee skills and transition assistance programs
Total participations on Human Rights training
Total participations on Culture and leadership
Total participations on Technical knowledge
Total participations on Health and safety
Total participations on trained on Sustainability
Total collaborators trained on Human Rights
Total collaborators trained on Code of Conduct
Total collaborators trained on Discrimination and harassment in the workplace
Total hours of training for employees - Human Rights
Total hours of training for employees - Culture and leadership
Total hours of training for employees - Technical knowledge
Total hours of training for employees - Health and safety
Total hours of training for employees - Sustainability
# of participations
# of participations
# of participations
# of participations
# of participations
# of collaborators
# of collaborators
# of collaborators
# of hours
# of hours
# of hours
# of hours
# of hours
2022
293
7,011,819
5,606
74,312
1,323,783
3,646,240
88,273
13,674
696,354
1,163,577
20
32,585
95,811
530,360
171,390
7,866
32,595
59,180
22,862
72,910
305,595
5,972,715
645,626
14,974
2021
268
10,833,617
2020
169
8,573,290
NA
NA
NA
NA
NA
NA
NA
NA
34
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
27
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
105
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Our People
Disclosure
Units
Employees receiving regular performance and career development reviews
Total employees receiving regular performance and career development reviews
(for example 360°, 9box)
# of collaborators
Integral Wellbeing
Total investment in Integral Wellbeing (vii)
Total of social development activities developed
Total of social development activities developed - Social
Total of social development activities developed - Health
Total of social development activities developed - Labor
Total of social development activities developed - Economic
Total of social development activities developed - Formative
Total of collaborators participating in social development activities
Total volunteerings performed
Total of volunteers that participated in a volunteering
Total hours dedicated to volunteering
Organizational climate assessment
Result of the organizational climate assessment (viii)
% of elegible employees who participated in the organizational climate assessment
Human Rights
Elegible work centers evaluated
$ Million Mexican Pesos
# of activities
# of activities
# of activities
# of activities
# of activities
# of activities
# of participations
# volunteerings
# volunteers collaborators
# of hours
%
%
Work centers evaluated in occupational risks (including human rights)
# work centers
Work centers evaluated in occupational risks (including human rights) - accumulated
# work centers
2022
8,890
1,776
5,312
1,767
1,136
1,485
434
490
296,964
2,679
100,743
735,570
87
70
52
561
2021
NA
NA
5,057
1,335
2,242
907
257
316
405,664
2,979
104,810
360,173
88
86
272
509
2020
NA
NA
3,512
2,126
713
448
81
144
677,424
1,533
58,027
1,059,944
NA
NA
237
237
106
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Our People
Disclosure
Human Rights
Units
2022
2021
2020
Employee training on human rights policies or procedures
Total number of hours of employee training on human rights policies or procedures
# of hours
Total employee training on human rights policies or procedures
# of collaborators
72,910
32,585
Non-discrimination
Incidents of discrimination and corrective actions taken
Total number of complaints received for Discrimination during the reporting period.
(see GRI 406-1 for actions taken)
# of incidents
Total number of complaints received for Harassment during the reporting period. (ix)
# of incidents
Our Community
Investment
Our Community investment
Our Community investment
Local Communities
$ Million Mexican Pesos
$ Million Dolars
Operations with local community engagement, impact assessments,
and development programs
Percentage of operations
Total of community wellbeing initiatives
%
# of initiatives
Total investment on community wellbeing initiatives
$ Million Mexican Pesos
88
1,417
833
43
100%
690
260
NA
NA
NA
NA
NA
NA
100%
876
245
Total of people benefited directly by community wellbeing initiatives
# people benefited
3,702,343
2,976,818
Procurement Practices
Supplier information
Total number of suppliers (x)
Argentina
Brazil
# of suppliers
# of suppliers
# of suppliers
53,998
1,340
9,653
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
750
NA
NA
NA
NA
NA
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Our Community
Disclosure
Procurement Practices
Supplier information
Chile
Colombia
Costa Rica
Ecuador
Guatemala
Mexico
Nicaragua
Panama
Peru
United States of America
Uruguay
Number of local suppliers
Proportion of spending on local suppliers
% of countries with Purchase from Local Suppliers >
90% at the level: Business/Country
Our Planet (xi, xvi)
Investment (xii)
Our Planet investment
Our Planet investment
Materials
Total materials used
Virgin materials used
Recycled materials used
Virgin materials used in product
Recycled materials used in product
Units
2022
2021
2020
# of suppliers
# of suppliers
# of suppliers
# of suppliers
# of suppliers
# of suppliers
# of suppliers
# of suppliers
# of suppliers
# of suppliers
# of suppliers
# of suppliers
%
$ Million Mexican Pesos
$ Million Dollars
tonnes
tonnes
tonnes
tonnes
tonnes
3,570
6,015
1,120
527
875
31,673
453
803
-
17
855
52,695
67
7,166
366
627,680
472,466
155,214
40,405
46,262
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
64
673
32
548,516
399,129
149,387
75,649
42,886
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
890
44
326,828
225,053
101,775
47,861
28,338
108
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Our Planet
Disclosure
Materials
Virgin materials used in packaging
Recycled materials used in packaging
Main Packaging Materials - Wood/Paper fiber packaging
Main Packaging Materials - Wood/Paper fiber packaging - Recycled
Main Packaging Materials - Metal (e.g.aluminum or steel) packaging
Main Packaging Materials - Metal (e.g.aluminum or steel) packaging - Recycled
Main Packaging Materials - Glass packaging (xiii)
Main Packaging Materials - Plastic packaging
Main Packaging Materials - Plastic packaging - Recycled
Main Packaging Materials - Plastic packaging - Recycled
Main Packaging Materials - Plastic recyclable - Packaging
Main Packaging Materials - Plastic recyclable - Packaging
Energy consumption within the organization
Total energy consumed
Total energy consumed from renewable sources
Total energy consumed from non-renewable sources
Indirect energy
Indirect energy from renewable sources
Indirect energy from non-renewable sources
Sustainability-Linked Bond:
KPI 2: Percentage of total electricity consumption coming from
renewable sources.
See "Sustainability-Linked Bond Framework (SLB)" section
Units
tonnes
tonnes
tonnes
%
tonnes
%
tonnes
tonnes
tonnes
%
tonnes
%
GJ
GJ
GJ
GJ
GJ
GJ
%
2022
432,061
108,953
5,893
32
33,608
63
135,711
363,902
86,018
24
329,029
90
22,892,310
6,303,486
16,588,824
10,795,014
6,259,078
4,535,936
2021
323,480
106,500
3,376
21
33,780
66
85,295
306,844
83,455
27
276,008
90
21,186,268
6,044,978
15,141,290
9,893,049
6,021,761
3,871,288
2020
177,192
73,437
NA
NA
NA
NA
NA
249,954
73,028
29
249,892
99
16,902,143
5,850,564
11,051,579
9,607,001
5,827,728
3,779,273
58.0
60.9
53
109
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Our Planet
Disclosure
Energy consumption within the organization
Direct energy
Direct energy fixed source from renewable sources
Direct energy fixed source from non-renewable sources
Direct energy mobile source from renewable sources
Direct energy mobile source from non-renewable sources
Energy intensity
Energy intensity (GJ/ total revenues)
Water consumption
Total water withdrawn from all sources
Total volume of groundwater
Total volume of third-party water
Total volume of surface water
Total volume of produced water
CO2 Emissions
Total CO2 Emissions (tCO2e)
Scope 1 CO2 emissions (direct)
Scope 1 CO2 emissions (direct fixed source) (xiv)
Scope 1 CO2 emissions (direct mobile source)
Scope 2 CO2 emissions (indirect)
Scope 3 CO2 emissions (Category : Business travel)
Emissions intensity
(tCO2e/total revenue)
Waste
Total waste
Total hazardous waste
Total non-hazardous waste
Total non-hazardous waste diverted from landfill
Units
2022
2021
2020
GJ
GJ
GJ
GJ
GJ
GJ/ $ Million Mexican Pesos
1,000 m3
1,000 m3
1,000 m3
1,000 m3
1,000 m3
tonnes of CO2-eq
tonnes of CO2-eq
tonnes of CO2-eq
tonnes of CO2-eq
tonnes of CO2-eq
tonnes of CO2-eq
tonnes of CO2-eq /
$ Million Mexican Pesos
tonnes
tonnes
tonnes
tonnes
12,097,296
20,312
1,399,317
24,096
10,635,570
34
37,210
19,399
16,164
1,637
10
1,732,708
1,258,178
475,572
782,606
474,530
9,369
2.5
289,692
8,992
280,700
192,949
11,293,219
22,198
1,342,793
1,019
9,927,209
38
34,298
18,413
14,261
1,624
NA
1,539,449
1,133,191
441,639
691,552
406,258
3,503
2.7
285,948
4,621
281,327
150,733
7,295,142
22,533
1,768,130
303
5,504,176
34
31,938
27,197
4,741
N/A
NA
948,464
496,138
102,346
393,791
452,326
NA
1.9
260,932
13,235
247,697
128,303
110
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Our Planet
Disclosure
Waste
Sustainability-Linked Bond:
KPI 1: Percentage of total operational waste diverted from landfills.
See “Sustainability-Linked Bond Framework (SLB)” section
Total waste (hazardous and non-hazardous) recycled or reused
Total waste (non-hazardous) landfilled
Total waste (hazardous and non-hazardous) incinerated (with energy recovery)
Total waste (hazardous and non-hazardous) incinerated (without energy recovery)
Total hazardous waste with final disposal (confinement) or with specia
handling waste
Management of significant waste- related impacts
Percentage of Coca-Cola FEMSA plants with zero waste certification
Units
%
tonnes
tonnes
tonnes
tonnes
tonnes
%
Governance (xi)
Disclosure
Anti-corruption
Training
Total governance body members that were communicated about anti-corruption
topics (Code of Ethics, which includes anti-corruption issues)
# of governance body
members
% of governance body members that were communicated about anti-corruption
policies and procedures
%
Memberships and affiliations
Total of memberships and affiliations (xv)
# of memberships
2022
68.7
172,699
87,751
21,335
304
7,604
77
2022
17
100
766
2021
53
153,156
130,595
NA
NA
2,198
NA
2021
18
100
475
2020
53
139,740
119,977
NA
NA
1,216
NA
2020
18
100
321
111
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Governance
Disclosure
Ethics
Code of Ethics
Units
2022
2021
2020
Total number of complaints received for alleged violations of the Code of Ethics
# of complaints
Total number of complaints received for alleged violations of the Code of Ethics
that were investigated, resolved and closed
% of complaints received for alleged violations of the Code of Ethics that were
investigated, resolved and closed
Total number of complaints received for alleged violations of the Code of Ethics
that continue under investigation
% of complaints received for alleged violations of the Code of Ethics that continue
under investigation
% of anonymous complaints
% of non-anonymous complaints
Complaints received for alleged violations of the Code of Ethics by category
Work environment (Human Resources)
Operations
Financial Information
Doubts and guidance
Appropriate corrective measures taken in closed cases by category
Administrative Act
Feedback
No action required
Review of Policies and/or Processes
Suspension
Dissmisal
Training
Others
# of complaints
%
# of complaints
%
%
%
# of complaints
# of complaints
# of complaints
# of complaints
# of cases
# of cases
# of cases
# of cases
# of cases
# of cases
# of cases
# of cases
3,927
3,014
77
913
23
72
28
3,183
568
135
41
247
999
857
147
9
407
64
284
4,410
3,597
81
813
18
NA
NA
3,562
830
18
NA
NA
NA
NA
NA
NA
NA
NA
NA
3,457
2,849
82
608
18
NA
NA
2,633
788
36
NA
NA
NA
NA
NA
NA
NA
NA
NA
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In 2022, the investment of the Our People pillar included the cost of health insurance for our employees, which is done annually but was not included in this total in previous years.
Notes:
i. NA: Not Available
ii.
iii. % based on total internal collaborators.
Includes only internal collaborators.
iv.
Includes contractors from AlPunto, Coca-Cola FEMSA and Health Division.
v.
vi. An in-depth analysis was conducted derived from the variation found in the hours reported in 2021, compared to those reported in 2020 and 2022. It was identified that one external database
generated a failure pulling mixed information of several years and not only of 2021; The hours reported in 2021 were 14,244,673, but the correct figure was 10,833,617. This year, that external database
was stopped to use only reports that can be generated from our different learning platforms.
Includes workplace harassment and sexual harassment. Actions taken are detailed in GRI 406-1.
vii. In 2022, investment in Integral Wellbeing includes the cost of medical expenses insurance for our collaborators, which is done annually but was not included in this total in previous years.
viii. Mercer Sirota Employee Engagement Survey of the benchmark for high-performance companies was 89.
ix.
x. Total suppliers may differ from the total detailed by country since the same supplier may be in several countries.
xi. Unless otherwise indicated, the Our Planet and Governance section of the Key ESG Data section does not include Envoy or Valora.
xii. Includes Coca-Cola FEMSA Green Bond.
xiii. Glass packaging is 100% virgin.
xiv. 2021 Scope 1 GHG emissions have been updated to include fugitive emissions such as refrigerant-specific gases.
xv. Considers associations, institutions, companies and organizations with which there was some type of association or relationship. Organizations in which two or more Business Units or
corporate areas are affiliated are discounted. In 2022, information on more countries is included, particularly for FEMSA Foundation, Proximity and Envoy. Payment of fees is the criterion for
the selection of associations.
xvi. For purposes of these metrics, Coca-Cola FEMSA considered owned and third-party distribution centers managed by KOF. Plants acquired during the year 2022 will report on these metrics in the 2023
Integrated Report.
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GRI content index
GRI Standard
Disclosure
GENERAL DISCLOSURES
GRI 102: General Disclosures
1. Organizational Profile
1. The organization and its reporting practices
Location
2-1
2-2
2-3
2-4
2-5
Organizational details
See " Stock Markets and Symbols" section.
Entities included in the organization’s sustainability
reporting
See "Financial Performance Summary" section.
Reporting period, frequency and contact point
See "About this report, Reporting Scope" section.
Restatements of information
2021 Scope 1 GHG emissions have been updated to include Refrigerant Gases consumptions.
Total hours of training for employees reported in 2021 was updated. See “Total hours of training for
employees“, in “Key ESG data”.
External assurance
See “ESG Independent Limited Assurance Report” section.
2. Activities and workers
Activities, value chain and other business relationships
2-6
2-7
2-8
3. Governance
2-9
2-10
2-11
See "How We Create Value" section.
See “Dear Shareholders” section.
See “Management Discussions & Analysis” section.
See “Key ESG Data” Economic table, under the GRI 204: Procurement Practices, section.
Employees
Workers who are not employees
See "Corporate Structure" section.
See “Key ESG Data. Our People” section.
Governance structure and composition
See "Corporate Governance" section.
See webpages:
https://femsa.gcs-web.com/es/corporate-governance/board-of-directors
https://femsa.gcs-web.com/es/corporate-governance/committees
Nomination and selection of the highest governance
body
See “Governance. Corporate Responsability” section.
See webpage: https://femsa.gcs-web.com/es/corporate-governance/board-of-directors
Chair of the highest governance body
See “Governance. Corporate Responsability” section.
See webpage:
https://femsa.gcs-web.com/es/corporate-governance/board-of-directors
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Disclosure
Location
Role of the highest governance body in overseeing the
managemrasent of impacts
Delegation of responsibility for managing impacts
Role of the highest governance body in sustainability
reporting
Conflicts of interest
Communication of critical concerns
2-12
2-13
2-14
2-15
2-16
See “Governance. Corporate Responsability” section.
See webpages:
https://www.femsa.com/en/about-femsa/corporate-governance/
https://femsa.gcs-web.com/corporate-governance/
https://www.femsa.com/en/sustainability/sustainability-strategy/our-vision/
https://www.femsa.com/en/sustainability/sustainability-strategy/materiality/
https://www.femsa.com/en/sustainability/sustainability-strategy/estrategy/
See “Governance.” section.
See “Sustainability Governance” section.
See webpages:
https://www.femsa.com/en/about-femsa/corporate-governance/
https://femsa.gcs-web.com/corporate-governance/
See “Governance.” section.
See “ Sustainability Governance” section.
See webpages:
https://www.femsa.com/en/about-femsa/corporate-governance/
https://femsa.gcs-web.com/corporate-governance/
See our “Code of Ethics”:
https://www.femsa.com/wp-content/uploads/2021/12/FEMSA-Code-of-Ethics.pdf
FEMSA has developed an Ethical Compliance System, managed by an independent firm and available
24 hours a day, 365 days a year, open to collaborators as well as other stakeholders, through four
different channels, all of them confidential and anonymous: telephone, webpage, e-mail, and chat.
In 2022, a total of 3,927 cases were reported through the Ethics Line and reviewed, of which 914 are
still under investigation and 3,014 were resolved and closed.
See “ FEMSA Ethical System” section.
See “Whistleblower system website”
https://secure.ethicspoint.com/domain/media/en/gui/80470/index.html
See “Code of Ethics”
https://www.femsa.com/wp-content/uploads/2021/12/FEMSA-Code-of-Ethics.pdf
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Disclosure
Location
Collective knowledge of the highest governance body
Evaluation of the performance of the highest governance
body
Remuneration policies
Process to determine remuneration
The reliability and transparency of our corporate governance policies at FEMSA are essential to our
long-term success. As always, we remain committed to reporting our results with objectivity and
integrity, complying with the requirements of the Mexican Generally Accepted Accounting Principles,
and exercising our responsibilities throughout the company in accordance with the highest business
ethics principles. Our corporate governance principles provide a framework for the operation of our
company as we strive to work in the best interests of our shareholders.
See “Governance” section.
See webpages:
https://femsa.gcs-web.com/es/corporate-governance/responsible-corporate-governance
https://www.femsa.com/en/about-femsa/corporate-governance/
See web page Corporate Governance > “Corporate Practices and nominations Committee”
https://femsa.gcs-web.com/corporate-governance/committees
See Corporate Governance Principles and Best Practices Survey:
https://femsa.gcs-web.com/static-files/6c659c77-1427-444b-83b2-d64846b971c1
Our Corporate Practices Committee, composed entirely of independent directors, reviews, and
recommends management compensation programs to ensure that they are aligned with shareholders’
interests and corporate performance.
See “Governance > Corporate Practices and Nomination Committee”:
https://femsa.gcs-web.com/corporate-governance/committees
Our Corporate Practices Committee, composed entirely of independent directors, reviews, and
recommends management compensation programs to ensure that they are aligned with shareholders’
interests and corporate performance.
See “Governance > Corporate Practices and Nomination Committee”:
https://femsa.gcs-web.com/corporate-governance/committees
2-17
2-18
2-19
2-20
2-21
Annual total compensation ratio
Not disclosed
4. Strategy, policies and practices
2-22
Statement on sustainable development strategy
See “Dear Shareholders.” section.
See “Our Sustainability Strategy” section.
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Disclosure
Location
Policy commitments
Embedding policy commitments
Processes to remediate negative impacts
Mechanisms for seeking advice and raising concerns
Compliance with laws and regulations
FEMSA currently has its Code of Ethics, Supplier Guiding Principles, Human and Labor Rights Corporate
Policy, Sustainability Corporate Policy, Environment Corporate Policy, Community Commitment
Corporate Policy, and Anti-Corruption Corporate Policy.
See webpages:
https://www.femsa.com/en/sustainability/sustainability-strategy/materiality/
https://www.femsa.com/en/sustainability/sustainability-strategy/our-commitment/
FEMSA’s values: https://www.femsa.com/en/about-femsa/organizational-culture/
Code of Ethics: https://www.femsa.com/wp-content/uploads/2021/12/FEMSA-Code-of-Ethics.pdf
Supplier Guiding Principles:
https://www.femsa.com/wp-content/uploads/2022/08/FEMSA_Suppliers-Guiding-Principles.pdf
See “Dear stakeholders”, “Our Sustainability Strategy”, “Our People”, “Our Community”, “Our Planet”,
“FEMSA Foundation”, “Governance” sections for information on how we embed policy commitments
for responsible business conduct throughout our activities and business relationships.
See “Dear stakeholders”, “Our Sustainability Strategy”, “Our People”, “Our Community”, “Our Planet”,
“FEMSA Foundation”, “Governance” sections for information on our managerial and programmatic
approach to addressing key environmental, social and governance issues.
See “Stakeholder Engagement” section.
See “FEMSA Ethical System” section
See “FEMSA Ethical System” section.
Whistleblower system website:
https://secure.ethicspoint.com/domain/media/en/gui/80470/index.html
Code of Ethics:
https://www.femsa.com/wp-content/uploads/2021/12/FEMSA-Code-of-Ethics.pdf
FEMSA received no significant fines or sanctions for non-compliance with laws/regulations in 2022,
including social, economic, or environmental issues. During 2022, 1,317 minor compliance incidents
were identified throughout the countries and point of sales in which we operate (excluding Valora
and Envoy), including topics such as product and service information and labeling, marketing
communications, environmental (6 minor incidents), labor legislation, among others.
(By “significant”, we mean the fine/penalty individually costs more than $10,000 USD (or equivalent in Mexican
Pesos, by “minor”, we mean the fine/penalty individually costs less than $10,000 USD”)
Membership associations
See “Memberships and Associations” section.
See “Key ESG Data. Our Community” section.
2-23
2-24
2-25
2-26
2-27
2-28
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Disclosure
5. Stakeholder engagement
Approach to stakeholder engagement
2-29
Location
At FEMSA we engage with a variety of stakeholders and maintain constant communication with them.
These stakeholders include nonprofit organizations, investors, industries, specialized institutions,
governments, consumers, clients, suppliers, collaborators, society, and the media, among others.
See “Materiality” section
See “Stakeholder Engagement” section.
See webpage: https://www.femsa.com/en/sustainability/sustainability-strategy/estrategy/
2-30
Collective bargaining agreements
See “Key ESG Data > Our People” section.
List of material topics
Management of material topics
3-2
3-3
MATERIAL TOPICS
Our Planet Topics
Management Approach
Management of material topics
3-3
See “Materiality” section.
See “FEMSA Priority Topics” section.
See webpages:
https://www.femsa.com/en/sustainability/sustainability-strategy/materiality/
https://www.femsa.com/en/sustainability/sustainability-strategy/estrategy/
See “Dear stakeholders”, “Our Sustainability Strategy”, “Our People”, “Our Community”, “Our Planet”,
“FEMSA Foundation”, “Governance” sections for information on how we embed policy commitments for
responsible business conduct throughout our activities and business relationships.
See “Materiality” section.
See “Our Planet” section
- Climate Action section.
- Water Management section.
- Circular Economy section.
FEMSA is committed to promote the reforestation of ecosystems, promote urban tree-planting, end
all deforestation and protect biodiversity, promoting the protection and conservation of endemic
ecosystems.
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Materials
301-1
Materials used by weight or volume
Recycled input materials used
301-2
Energy
302-1
302-3
302-4
302-5
Water and Effluents
303-1
303-2
303-3
303-4
303-5
Emissions
305-1
305-2
305-3
305-4
305-5
Energy consumption within the organization
Energy intensity
Reduction of energy consumption
Reductions in energy requirements of products
and services
Interactions with water as a shared resource
Management of water discharge-related impacts
Water withdrawal
Water discharge
Water consumption
Direct (Scope 1) GHG emissions
Energy indirect (Scope 2) GHG emissions
Other indirect (Scope 3) GHG emissions
GHG emissions intensity
Reduction of GHG emissions
Location
“Key ESG Data” Our Planet table, section.
FEMSA seeks the elimination of non-recyclable single-use plastic in our operation, ensure that our
packaging uses recycled inputs and is recyclable at the end of its useful life, promote the elimination,
reduction, recyclability, and recycled content in our suppliers packaging and maximizes the recyclability
and recycled content of our own-brand products.
We have associated programs regarding the use of packing. For example, to increase the use of
reusable packaging, the use of recyclable packaging, to phase out single-use plastic packaging, to
increase the use of recycled material as packaging solutions, to ensure that recyclable packaging is
actually recycled and investing in R&D resources to sustainable packaging and alternative solutions.
See “Sustainable Products & Services” section.
See “Climate Action” section
“Key ESG Data” Our Planet section.
See “Materiality” section.
See “Our Planet” section.
See “Water Management“ section
Key ESG Data” Our Planet section.
See “Climate Action” section.
“Key ESG Data” Our Planet section
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Waste
306-1
306-2
306-3
306-4
306-5
Waste generation and significant waste-related impacts
Management of significant waste- related impacts
Waste generated
Waste diverted from disposal
Waste directed to disposal
Supplier Environmental Assessment
Location
See “Materiality” section.
See “Our Planet” section.
- Circular Economy section.
“Key ESG Data” Our Planet section.
308-1
308-2
New suppliers that were screened using environmental
criteria
We promote best practices in human rights, environment, community, ethics, and values among our
suppliers through our code of ethics, “Supplier Guiding Principles”. We ensure that all our suppliers
are aware of these practices.
Negative environmental impacts in the supply chain
and actions taken
As of December 2022, no negative environmental impacts in the supply chain were identified or
investigated during the reporting period.
See Code of Ethics:
https://www.femsa.com/wp-content/uploads/2021/12/FEMSA-Code-of-Ethics.pdf
Our PeopleTopics
Management Approach
Management of material topics
3-3
See “Materiality” section.
See “Our People” section.
- Human and Labor Rights section.
- Diversity, Equity, and Inclusion section.
- Integral Wellbeing section.
See “Corporate Governance” section.
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GRI Standard
Disclosure
Anti-corruption
Location
Operations assessed for risks related to corruption
Communication and training about anti-corruption
policies and procedures
Confirmed incidents of corruption and actions taken
205-1
205-2
205-3
As we do every year, we reviewed and updated our Code of Ethics and shared it with all our
collaborators. In addition, we have an online certification on the Code of Ethics, which was taken
by collaborators in some of our Business Units.
Our Business Code of Ethics covers all areas of professional conduct and is applicable to all our
employees, including our Chief Executive Officer, Chief Financial Officer, and Principal Accounting
Officer. All of our employees are required to sign a statement indicating their understanding of and
adherence to these policies.
See “Code of Ethics”
https://www.femsa.com/wp-content/uploads/2021/12/FEMSA-Code-of-Ethics.pdf
See “Ethics & Legality Culture” section.
See “Governance” section.
The Secretary of the Board ensures that the members of the Board of Directors annually sign the
Commitment Letter to comply with FEMSA’s Code of Ethics, which includes Anti-corruption statements.
During 2022, we conducted training sessions for our collaborators on topics such as
anti-corruption, anti-money laundering, personal data protection, among others, in which
FEMSA’s strategic areas participated.
In addition to the Code of Ethics, we have Corporate Policies which are an essential part of our
corporate governance. These policies establish the guidelines we should follow to conduct ourselves
with integrity and responsibility, becoming a reference for our Culture.
These policies are mandatory for FEMSA and all its employees. To ensure compliance, we have
established controls to prevent, identify, investigate, sanction and remedy any possible risk of violation.
See “Anti-Corruption FEMSA’s Corporate Policy” :
https://www.femsa.com/wp-content/uploads/2022/01/Anti-Corruption-FEMSA.pdf
See “Governance” section.
Our collaborators must disclose any instances of corruption or misbehavior as soon as they
are identified. To correct the situation and prevent it from happening again, an external inquiry is
conducted with the necessary follow-up steps, such as disciplinary actions, among others.
In addition to our Code of Ethics, FEMSA’s perspective on bribery and corruption is reflected in the
“Anti-Corruption FEMSA’s Corporate Policy”, procedures, and training was available to all employees on
the risks of bribery and corruption and how to avoid them.
See our 20-F form. https://femsa.gcs-web.com/es/financial-reports/20fs
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Employment
Location
401-1
New employee hires and employee turnover
See “Key ESG Data” Our People section.
Benefits provided to full-time employees that are not
provided to temporary or part- time employees
401-2
401-3
Parental leave
Labor Management Relations
At FEMSA we look for employees who are committed and passionate about serving others, to whom we
offer working conditions and benefits that exceed those of the law. We also offer a work environment of
constant learning, growth, and development.
FEMSA fosters employees’ health and wellbeing. Depending on the business unit, different programs or
initiatives in the following areas may apply: flexible working hours, working-from-home arrangements,
part-time working options, childcare facilities or contributions, breast-feeding/lactation facilities or
benefits, paid parental leave (for female and male employees), among others.
See “Key ESG Data” Our People section
402-1
Minimum notice period regarding operational changes
Notices of operational changes are made in accordance with the applicable laws of the countries in which
we operate.
Occupational Health and Safety
Occupational health and safety management system
403-1
403-2
Hazard identification, risk assessment, and incident
investigation
All FEMSA's Business Units have Industrial Safety and Occupational Health management systems
according to their activities and line of business. They are also in compliance with FEMSA's Corporate
Policies and the legal framework of the countries in which we operate. Their main objective is to create
safe workplaces and healthy lifestyles.
All FEMSA’s Business Units have certified professionals in charge of the administration of the
Occupational Health and Safety Management Systems, such as the following:
- Compliance with applicable regulations according to their line of business.
- Compliance with internal Occupational Health and Safety policies.
- Identification and mitigation of risks in the work centers.
- Compliance with the Industrial Safety and Occupational Health programs.
- Monitoring the health and safety of employees.
- Management of different communication mechanisms so that collaborators, clients and
third parties can report activities or unsafe conditions and/or acts at work.
- Corporate-level internal evaluations to monitor compliance with management systems.
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Location
Occupational health services
Worker participation, consultation, and communication
on occupational health and safety
At FEMSA we have medical care services that contribute to the supervision and surveillance of our
collaborators’ health in a preventive manner. These include early detection of illnesses associated with
working conditions, as well as providing quality medical care to collaborators who present any discomfort
during their workday.
Main Activities:
- Medical attention to collaborators.
- Application of entrance and periodic medical examinations.
- Elaboration of clinical history according to exposure risks.
- Emergency medical attention.
- Accident investigation.
- Evaluations of the work environment (industrial hygiene).
- Vaccination campaigns.
- Periodic reviews are scheduled to audit and contribute to the improvement of the quality
and compliance of the service.
At FEMSA there are Industrial Safety and Occupational Health Committees made up of
representatives from all the Business Units, through which different topics are addressed, such as:
- Updates in Safety and Health programs.
- KPIs (Indicators of Absenteeism, Risk Premium, Fatalities)
- Update of policies and guidelines
- Communication of relevant health and safety information.
We have various tools, including Organizational Climate Surveys, to understand our collaborators’
perceptions towards management systems, work environment, relationships with their supervisors,
processes, and assigned tasks.
Worker training on occupational health and safety
See “Protect Physical, Mental & Emotional Health” section.
“Key ESG Data” Our People section.
403-3
403-4
403-5
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Disclosure
Location
Promotion of worker health
403-6
403-7
403-8
403-9
403-10
Prevention and mitigation of occupational health and
safety impacts directly linked by business relationships
Workers covered by an occupational health and safety
management system
Work-related injuries
Work-related ill health
See “Protect Physical, Mental & Emotional Health” section
“Key ESG Data” Our People section.
FEMSA promotes different health care programs internally and in collaboration with public and private
institutions depending of the Business Units, such as the following:
- Vaccination Campaigns.
- Nutritional Consultations.
- Psychosocial support consultations.
- Workshops oriented to the promotion of mental health.
- Awareness and prevention campaigns (e.g. breast cancer, prostate cancer, smoking,
cardiovascular risk factors, etc.).
- Activities that promote physical activity(for example running, cycling, etc.).
See “Protect Physical, Mental & Emotional Health” section.
FEMSA is committed to providing safe workspaces and supporting healthy lifestyles for all employees.
To achieve this, we have implemented Occupational Health and Safety Programs across all business
units, using the expertise of Occupational Health and Occupational Risk Prevention professionals to
continuously improve our processes. These Management Systems serve as a fundamental tool towards
achieving our goals.
100% of our collaborators are covered by an occupational health and safety management system.
“Key ESG Data” Our People section.
Training and Education
404-1
Average hours of training per year per employee
"Key ESG Data" Our People section.
404-2
404-3
Programs for upgrading employee skills and transition
assistance programs
See "Career Development and Continuous Learning" section.
In Mexico, we promote the Life and Development Program (PLAVIDE). It is designed so that personnel
approaching retirement, along with their families, prepare for this new stage, understanding that it is a
natural process in life.
Percentage of employees receiving regular performance
and career development reviews
"Key ESG Data" Our People section
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Diversity and Equal Opportunity
Diversity of governance bodies and employees
405-1
Non-discrimination
Incidents of discrimination and corrective actions taken
406-1
Freedom of Association and Collective Bargaining
Operations and suppliers in which the right to freedom of
association and collective bargaining may be at risk
407-1**
Location
“Key ESG Data” Our People section.
See “Diversity, Equity and Inclusion” section.
See “Corporate Responsability” section.
Our Human Resources area include the FEMSA’s Code of Ethics, and its topics contained such as
discrimination and harassment, in all course inductions for all employees. Additionally, specifically training
programs are executed to reinforce these topics throughout the reporting year. In 2022, a total of 22,862
collaborators reinforced their knowledge on Discrimination and harassment in the workplace.
Our collaborators must disclose any instances of discrimination as soon as they are discovered. To
correct the situation and prevent future incidents, an internal inquiry is conducted with the necessary
follow-up steps, such as disciplinary actions, among others. FEMSA’s Code of Ethics reflects the
company’s perspective on discrimination incidents and how to avoid them.
In the reporting year, 88 incidents on “Discrimination and/or any lack of Inclusion and Diversity” were
reported through our Whistleblower system and 54 were closed as of December 31, 2022. Of these 54
reports, feedback was provided in 28, no necessary actions in 8, the employment relationship was termi-
nated in 6, an administrative report was issued in 2 and training was provided in 1.
In the reporting year, 1,417 incidents on “Abuse of Authority/Workplace Harassment” were reported
through our Whistleblower system and 1,064 were closed as of December 31, 2022. Of these 1,064
reports, feedback was provided in 414, no necessary actions in 254, the employment relationship was
terminated in 162, an administrative report was issued in 97, suspension was taken in 6, Policy/Process
Review in 29, training was provided in 16, and other in 86.
FEMSA and its Business Units comply with all laws designed to preserve the right to exercise freedom of
association and collective bargaining. FEMSA has not identified any operations at which those rights are
at significant risk. During 2022, 52 work centers were evaluated for occupational risks (including human
rights). In 2022, no risks have been identified in FEMSA’s Business Units in relation to human rights. We
expect the same ethical conduct from our business partners.
See Code of Ethics:
https://www.femsa.com/wp-content/uploads/2021/12/FEMSA-Code-of-Ethics.pdf
See Suppliers Guiding Principles:
https://www.femsa.com/en/press-room/documents/suppliers-guiding-principles/
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Child Labor
Location
Operations and suppliers at significant risk for incidents
of child labor
408-1**
Forced or Compulsory Labor
Operations and suppliers at significant risk for incidents
of forced or compulsory labor
409-1**
Security Practices
We value, respect, and protect the people who work at FEMSA and do not allow child or forced labor. We
comply with all child labor laws and support the eradication of child labor and exploitation. We expect the
same ethical conduct from our business partners.
See Code of Ethics:
https://www.femsa.com/wp-content/uploads/2021/12/FEMSA-Code-of-Ethics.pdf
See Suppliers Guiding Principles:
https://www.femsa.com/en/press-room/documents/suppliers-guiding-principles/
We value, respect, and protect the people who work at FEMSA and do not allow forced labor.
We comply with all labor laws and support the eradication of forced or compulsory labor. We expect the
same ethical conduct from our business partners.
See Code of Ethics:
https://www.femsa.com/wp-content/uploads/2021/12/FEMSA-Code-of-Ethics.pdf
See Suppliers Guiding Principles:
https://www.femsa.com/en/press-room/documents/suppliers-guiding-principles/
410-1
Security personnel trained in human rights policies
or procedures
“Key ESG Data” Our People section.
Rights of Indigenous Peoples
Incidents of violations involving rights of indigenous
peoples
411-1
As of December 2022, no incidents of violations involving the rights of indigenous peoples were identified
or investigated during the reporting period.
See Code of Ethics:
https://www.femsa.com/wp-content/uploads/2021/12/FEMSA-Code-of-Ethics.pdf
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Human Rights Assessment
Location
Operations that have been subject to human rights
reviews or impact assessments
412-1**
FEMSA and its Business Units comply with all laws designed to preserve the right to exercise
freedom of association and collective bargaining. FEMSA has not identified any operations at which
those rights are at significant risk. During 2022, 52 work centers were evaluated for occupational
risks (including human rights). In 2022, no risks have been identified in FEMSA’s Business Units in
relation to human rights. We expect the same ethical conduct from our business partners.
See Code of Ethics:
https://www.femsa.com/wp-content/uploads/2021/12/FEMSA-Code-of-Ethics.pdf
See Suppliers Guiding Principles:
https://www.femsa.com/en/press-room/documents/suppliers-guiding-principles/
412-2
Employee training on human rights policies or
procedures
“Key ESG Data” Our People section.
Significant investment agreements and contracts that
include human rights clauses or that underwent human
rights screening
412-3
The “Suppliers Guiding Principles” were prepared based on FEMSA’s Code of Ethics and Corporate
Policies. They outline the minimum required expectations for suppliers’ behavior in key areas of
Human and Labor Rights, Sustainability, Culture of Lawfulness, Information Security. It is the supplier’s
responsibility, in its relationship with FEMSA, to adopt the necessary methods and practices to comply
with the Guiding Principles contained in this document.
The “Suppliers Guiding Principles” shall be complied with by all current and potential FEMSA suppliers
participating in the different operations and supply chains. The term “supplier” includes individuals and
legal entities that provide goods, render services, are distributors, agents, intermediaries, representatives,
as well as any third party acting on behalf of and/or representing FEMSA.
See Suppliers Guiding Principles:
https://www.femsa.com/en/press-room/documents/suppliers-guiding-principles/
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Our CommunityTopics
Management Approach
Management of material topics
3-3
Economic Performance
Location
See “Materiality” section
See “Our Community” section.
- Community Wellbeing section.
- Economic Development section.
- Sustainable Sourcing, section.
201-1
201-2
201-3
201-4
Direct economic value generated and distributed
See "Key ESG Data" Our Community section.
Financial implications and other risks and opportunities
due to climate change
See "Governance > Climate-Related Risks and Opportunities" section.
See “TCFD Index” section.
Defined benefit plan obligations and other retirement
plans
Financial assistance received from government
FEMSA and its Business Units have a Benefits Plan that exceeds those stipulated by Mexican law. It
includes benefits for family and financial planning, and other benefits focused on improving employees’
quality of life. There are also retirement programs, one of which focuses on voluntary retirement
contributions.
One of these programs is the “Cultivemos” program, which is a retirement benefit plan in which for
every peso that an employee voluntarily saves, the company will contribute another peso to the fund.
Employees can later tap into these savings at the time of retirement. This benefit and the proportion of
the company’s contribution are based on the employee’s seniority.
Given that FEMSA operates in different countries, the legal frameworks on financial assistance received
from the government are different. FEMSA is committed to always operate within the legal framework
in every country and to be an example of good practices for the private sector, namely go above and
beyond of that framework.
Market Presence
202-1
202-2
Ratios of standard entry level wage by gender compared
to local minimum wage
Not disclosed
Proportion of senior management hired from the local
community
Not disclosed
Indirect Economic Impacts
203-1
203-2
Infrastructure investments and services supported
Significant indirect economic impacts
See “Our Community” section.
“Key ESG Data” Our Community section
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Procurement Practices
Proportion of spending on local suppliers
204-1
Anti-competitive Behavior
Location
FEMSA has a supply chain comprised of 53,998 suppliers. % of purchases from local suppliers (local
providers are those that operate in the country they serve) 67%.
FEMSA identify critical suppliers using different elements such as High-volume suppliers, Critical
component suppliers and Non-substitutable suppliers.
The members of our value chain are aware of, committed to, and comply with the FEMSA Supplier
Guiding Principles, included our agricultural suppliers. For example, in our OXXO Stores, Andatti Coffee,
an Exclusive Brand of CAFFENIO (FEMSA Company), promotes the protection of biodiversity in the coffee-
growing area of Veracruz, México. COSECHA Program has been supporting the development of coffee
growers that are part of CAFFENIO value chain in the productive areas of Veracruz for more than 10
years. In alliance with Pronatura Veracruz (an environmental organization), CAFFENIO has been training,
reforesting, and certifying coffee farms that meet the criteria to be a Protected Conservation Area.
For these efforts, on 2021, CAFFENIO received the”Los Bóscares Award” in the Supply Chain with Zero
Deforestation category with the project “Protection of biodiversity in the coffee-growing area of the High
Mountains, Veracruz.”
See “Key ESG Data” Our Community section.
Tax
206-1
207-1
207-2
207-3
Legal actions for anti-competitive behavior, anti-trust, and
monopoly practices
See our 20-F form. https://femsa.gcs-web.com/financial-reports/20fs
Approach to tax
Tax governance, control, and risk management
Stakeholder engagement and management of
concerns related to tax
See our 20-F form. https://femsa.gcs-web.com/financial-reports/20fs
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Local Communities
Location
Operations with local community engagement, impact
assessments, and development programs
Operations with significant actual and potential negative
impacts on local communities
413-1
413-2
Supplier Social Assessment
414-1
New suppliers that were screened using social criteria
Negative social impacts in the supply chain and actions
taken
Political contributions
414-2
Public Policy
415-1
Customer Health and Safety
416-1
416-2*
Assessment of the health and safety impacts of product
and service categories
Incidents of non-compliance concerning the health and
safety impacts of products and services
At FEMSA, community relations are managed at the country level to adapt to local circumstances. By
2022, 100% of FEMSA’s Business Units developed community actions.
See “Our Community” section.
“Key ESG Data” Our Community section.
The internal methodology developed by FEMSA’s Risk Management and Community Relationship Model
(MARRCO) allows us to identify risks and opportunities to create value and optimize our actions and
programs. MARRCO supports the development of capabilities through multidisciplinary teams in our
plants and distribution centers.
See “Our Community” section.
“Key ESG Data” Our Community section.
We promote good practices in the areas of human rights, environment, community, ethics and values
among our suppliers through our code of ethics, “Supplier Guiding Principles”, and we seek to ensure
that they are all aware of them.
See “Sustainable Sourcing” section.
“Key ESG Data” Our Community section.
Given that FEMSA operates in different countries, the legal frameworks on political contributions vary.
FEMSA is committed to always operating within each country’s legal boundaries to be an example of
good practices for the private sector, and go above and beyond that framework. Additionally, in the case
of Mexico, FEMSA has signed the Code of Ethics established by the Consejo Coordinador Empresarial
(Business Coordination Council), which prohibits donations to promote either political campaigns,
candidates, or committees. Nevertheless, FEMSA’s Code of Business and Code of Ethics forbids any
contribution that could be considered corruption according to each operating country’s laws.
Our production processes comply with the highest quality standards and our ingredients comply with the
local standards of each of our operations, as well as with the standards of other regulatory agencies.
See “Supporting Healthy Lifestyles” section.
As of December 2022, no incidents of non-compliance concerning the health and safety impacts of
products and services were identified or investigated during the reporting period.
See Code of Ethics:
https://www.femsa.com/wp-content/uploads/2021/12/FEMSA-Code-of-Ethics.pdf
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Marketing and Labelling
Location
Requirements for product and service information
and labelling
Incidents of non-compliance concerning product
and service information and labeling
Incidents of non-compliance concerning marketing
communications
417-1
417-2*
417-3*
Customer Privacy
418-1*
Substantiated complaints concerning breaches of
customer privacy and losses of customer data
In order to enable our consumers to make informed choices, our product labels feature clear and
accessible nutritional content information.
See “Supporting Healthy Lifestyles” section
FEMSA received no significant fines or sanctions for non-compliance with laws or regulations in 2022,
including social, economic, or environmental issues. During 2022, 425 minor compliance incidents of
non-compliance concerning product and service information and labeling were identified throughout
the countries and point of sales in which we operate (excluding Valora and Envoy). (By “significant”,
we mean the fine/penalty individually costs more than US$ 10,000 (or equivalent in Mexican Pesos, by
“minor”, we mean the fine/penalty individually costs less than US$ 10,000”)
FEMSA received no significant fines or sanctions for non-compliance with laws/regulations in 2022,
including social, economic, or environmental issues. During 2022, 22 minor compliance incidents of non-
compliance concerning marketing communications were identified throughout the countries and point of
sales in which we operate (excluding Valora and Envoy). (By “significant”, we mean the fine/penalty individually
costs more than US$ 10,000 (or equivalent in Mexican Pesos, by “minor”, we mean the fine/penalty individually
costs less than US$ 10,000”)
As of December 2022, no incidents of breaches of customer privacy and losses of customer data were
identified or investigated during the reporting period.
See Code of Ethics:
https://www.femsa.com/wp-content/uploads/2021/12/FEMSA-Code-of-Ethics.pdf
DETAILS AND DISCLAIMERS:
*The information contained in this document is provided in good faith and is intended to enhance understanding of the organization’s non-financial performance. Although the information is believed to be
correct at the time of publication, we cannot accept any liability for any loss or damage caused by any person or organization acting or failing to act as a result of the information contained herein.
**At FEMSA we designed a Labor Intelligence System to prevent and mitigate labor risks. This system is based on a methodology that generates risk scenarios to be weighted according to the
probability of occurrence and level of impact for the organization. To obtain the definition of risks, we evaluate the workplace with respect to different human rights issues such as child labor, working
hours, discrimination, among others.
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TCFD index
With the intention of not only answering our stakeholders’
concerns, but also to prepare FEMSA for future climate-related
challenges, we worked on identifying and quantifying the main
risks and opportunities related to climate change, as well as
their potential financial impacts over the short, medium, and
long term. This exercise will allow us to adapt our operations
and be ready to mitigate climate-related impacts following
the recommendations of the Task Force on Climate-Related
Financial Disclosures (TCFD).
Governance
The organization’s governance around climate-related risks and
opportunities
Annual Report 2022, please see the following sections:
“Dear Shareholders” section.
“Corporate Responsibility” section.
“Sustainability Governance” section.
“Ethical & Socially Responsible Behavior” section.
Strategy & Risk Management
Strategy: The identification of actual and potential impacts
of climate-related risks and opportunities on the organization’s
businesses, strategy, and financial planning
Risk Management: The processes used by the organization
to identify, assess, and manage climate-related risks
FEMSA, in conjunction with its Business Units, is aligned with
the Task Force on Climate-Related Financial Disclosures (TCFD)
recommendations on key disclosures focused on the resilience
of the organization’s strategy, considering climate-related sce-
narios. As an initial effort, we identified and quantified the main
climate-related risks and opportunities of Coca-Cola FEMSA,
OXXO, OXXO GAS, and Solistica.
We evaluated physical and transition risks, and opportunities in
line with TCFD recommendations through a 5-step methodology:
1. Taxonomy of risks and opportunities.
Multidisciplinary groups in each BU (conformed by areas such
as Sustainability, Strategic Planning, Operations, Real Estate,
Marketing, Finance, Corporate Affairs, etc.), worked together
and identified, prioritized, and quantified the main climate-
related risks and opportunities.
As a result of the review of recommended scenarios, and the
multidisciplinary work sessions, we considered three scenarios
in our analysis, using a combination of those presented by
the International Energy Agency (IEA), the Intergovernmental
Panel on Climate Change (IPCC) and the Network for Greening
the Financial System (NGFS). This combination will help us
to assess physical and transition risks and opportunities
within various temperatures complying with the TCFD
recommendations:
1. “Net Zero” Scenario, global temperature rises 1.5°C,
Assumption: Net zero emissions are reached globally by
2050.
Climate Scenarios selected: a) IPCC (SSP1 – 1.9), b) IEA
(NZE), c) NGFS (Net Zero 2050)
2. Definition of Climate Scenarios and time horizons.
2. “Moderate Transition” Scenario, global
3. Identification of variables associated to climate scenarios.
4. Estimation of risk and opportunities parameters.
5. Calculation of climate Value at Risk.
temperature rises 1.7°C,
Assumption: Only developed economies reach net zero by
2050 and the rest by 2070.
Climate Scenarios selected: a) IPCC (SSP1 – 2.6), b) IEA
(SDS), c) NGFS (Below 2°C)
3. “No Ambition” Scenario, global temperature
rises 2.8°C,
Assumption: There is no date to reach Net Zero, and
therefore the Paris Agreement is not fulfilled.
Climate Scenarios selected: a) IPCC (SSP2 – 4.5), b) IEA
(Stated Policies), c) NGFS (Determined Contributions)
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Time horizons
We used three scenarios to define three-time horizons to help
us understand the potential impact of climate-related risks
and opportunities on our business. We chose these for the
scenario analysis due to relatively abundant data available for
reference and their compatibility with our business plans and
timelines. These are also aligned with national and internation-
al objectives on climate change: “Short-term” period 2030,
“Medium-Term” period 2040 and “Long-term” period 2050.
Each of the three scenarios and time horizons presents its own
social, political-regulatory, economic, and technological-energy
context, presenting important differences and consequences
regarding climate change.
The IPCC and EIA scenarios are recommended by TCFD, with
widespread market adoption. The vast majority of physical
climate models follow the IPCC Representative Concentration
Pathways (RCPs). NGFS scenarios are compatible with the
Financial Stability Board and provide comprehensive databases
of market variables. The three sets of scenarios are consistent
and must be updated frequently.
Summary of risks and opportunities identified.
The next table summarizes the main risks and opportunities
that were identified, but also quantified.
Transition Risk
Type
Category Risk/Opportunity
Financial
Impact
Climate scenarios and time horizons
with the greatest impact
Chronic
Decrease in rain
High
Physical Risk
Extreme temperatures
Low
Acute
Policy
Increase in flooding
Low
Operating limits
Medium
Changes in the regulation
of products and/or
services
Change in customer
behavior
Cost increase in raw
materials
Market
Low
Medium
Medium
Entry of new competitors
Low
No ambition by 2050.
Main basins will drop their levels dramatically
and water scarcity might cause a decrease in
production.
No ambition by 2040.
The increase in temperature will impact on
energy consumption of our refrigeration and air
conditioning equipment at our sales points.
Net Zero by 2050.
Supply chain and distribution will have significant
impacts. Also, the damage on infrastructure will
represent some losses.
Net Zero by 2050.
High carbon pricing and limitation on fossil fuels use
will represent high costs on production, distribution,
and commercialization for most of our businesses.
Net Zero by 2050.
Change in regulation could mean high investment
costs to adapt and comply with new requirements.
Net Zero by 2050.
Customer will look for greener options which could
mean significant volume losses for our businesses.
Net Zero by 2050.
The cost increase in key raw materials will increase
operational costs.
Net Zero by 2050.
The global energy transition implies the gradu-
al implementation in the energy markets of new
low-emission energy sources, meaning new compet-
itors mainly for Retail Service Stations
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Type
Category Risk/Opportunity
Financial
Impact
Climate scenarios and time horizons
with the greatest impact
Improvement in the
efficiency of production
facilities and processes
Medium
Net Zero by 2050.
The use of energy efficient equipment could
represent savings for businesses.
Resource
efficiency
Recycling
Reduction of water use
and consumption
Opportunities
Energy
Source
Low carbon energy
sourcing
Market
Use of incentives from
public sector
Products
and
services
Development and/or ex-
pansion of low-emission
goods and services
Low
Low
Low
Low
Low
Net Zero by 2050.
The use and expansion of recycling processes to
introduce recycled materials into a new production
cycle as well as selling them to third parties would
bring potential financial benefits to the businesses.
Net Zero by 2050.
Projects to decrease water consumption will bring
savings to the business
Net Zero by 2050.
Using low-emission energy sources could represent
a reduction in its associated costs, since in the
context of these scenarios, the prices associated
with renewable energies would tend to decrease in
the medium and long term.
Net Zero by 2030.
Tax deduction in the Income Tax (ISR) that is
exercised when making investments in equipment
that generates renewable energy or energy efficient
equipment.
Net Zero by 2030.
The business could quickly adapt to new customer
preferences.
As part of the project, FEMSA prepared RACI matrices for
Coca-Cola FEMSA, OXXO, OXXO GAS and Solistica, which will
allow the distribution of responsibilities, give structured mon-
itoring, improve and align the strategy on an annual basis and
continue to improve the identification, prioritization, and quan-
tification of the main climate-related risks and opportunities.
To see more information, please see Annual Report 2022
sections:
“Materiality”
“Corporate Responsibility”
“FEMSA Priority Topics”
“Climate Action”
“Water Management”
“Board Committees”
“Sustainability Governance”
Metrics and Targets
FEMSA Annual Report 2022, please see sections:
“Our Sustainability Strategy”
“Goals and Targets”
“FEMSA Sustainability-Linked Bond Update”
“Coca-Cola FEMSA Sustainability-Linked Bond Update”
“Climate Action”
“Water Management”
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sustainability-linked bond framework (SLB)
In 2022 and 2021 FEMSA announced the placement
of Mexican Peso-denominated and Euro-denominated
sustainability linked notes in the Mexican and international
capital markets, respectively.
The 2022 issuance was of Ps. 9,273,843,400.00. The issued
bonds were purchased by 33 institutional investors and the
issuance was oversubscribed 1.9x times. The transaction was
completed through a dual-tranche format with the tickers
FEMSA 22-2L and FEMSA 22L. The first tranche was issued at
an annual fixed rate of 9.65% (Mbono+0.45%) for an amount
of Ps. 8,446,384,600.00 due in 2032. The second tranche
was issued at an annual variable rate of TIIE28 + 0.10% for an
amount of Ps. 827,458,800.00 due in 2027.
Pursuant to the terms of both Bonds, they are linked to
FEMSA’s Sustainability Linked Bond Framework, which was
adopted and published by the Company in connection to
the 2021 issuance of its Euro-denominated sustainability
linked notes in the international capital markets for €700
million in senior notes due in 2028, and €500 million in senior
notes due in 2033. This Framework is aligned with the 2020
Sustainability Linked Bonds Principles (“SLBP”), as administered
by the International Capital Market Association (ICMA34), and
it includes certain Sustainability Performance Targets of the
Company which are aligned with its overall sustainability
strategy priorities for 2030. As per the Bonds’ terms, the
Sustainability Performance Targets’ satisfactory completion will
be verified by an accredited third party and can be consulted in
the following link:
https://femsa.gcs-web.com/es/sustainable-finance/.
The following five components form the basis of FEMSA’s
Sustainability-Linked Bond Framework:
1. Selection of key performance indicators (KPIs).
2. Calibration of sustainability performance targets (SPTs).
3. Bond characteristics.
4. Reporting.
5. Verification.
34 https://www.icmagroup.org/assets/documents/Regulatory/Green-Bonds/June-2020/Sustainability-Linked-Bond-Principles-June-2020-171120.pdf
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1. Selection of Key Performance
Indicators (KPIs)
1.1. Zero Operational Waste to Landfill
(Circular economy).
KPI 1: Percentage of total operational waste diverted from landfills35.
SCOPE
This KPI applies to 100% of FEMSA’s Business Units, including all organic growth over the bond’s
lifetime36. As of 2022, this KPI has data coverage of 93% of the total of FEMSA’s workplaces37. We
continue working on increasing the percentage of workplaces with information, however, Cooking
Depot, Doña Tota, OXXO International, and Envoy Solutions have yet to be included for the
sustainability performance objectives (SPT).
METHODOLOGY
This KPI is calculated in compliance with our Corporate Information Policy and our internal
consolidation manual for non-financial information. The business units report the total waste
generated by type on a quarterly and annual basis (Non-hazardous and Hazardous Waste) and
the final disposal method. For Non-Hazardous Waste, the disposal methods consider reuse
or (which includes composting or anaerobic digestion, incineration -with and without energy
recovery-, disposed to landfill). For Hazardous Waste, the previous disposal methods apply
along with special management disposal and confinement, all in accordance with environmental
regulations.
Total operational waste (in tonnes): is the sum of all waste types, excluding hazardous
waste38.
Total waste recycled or reused (in tonnes): the sum of the final disposal of each type
of operational waste classified as reused or recycled.
1.2. Renewable energy
KPI 2: Percentage of total electricity consumption coming from renewable sources.
SCOPE
This KPI applies to 100% of FEMSA’s business units, including all organic growth over the
bond’s lifetime. By 2030 we expect to have an annual electricity consumption of more than
3.7 TWh (an increase of 40% from our 2020 consumption of 2.6 TWh).
During 2022, this KPI maintains data coverage of 99% across all of FEMSA’s workplaces. Part
of the workplaces that are not included in 2022, but that will be considered in the following
reports on the sustainability performance objectives (SPT), correspond to Envoy Solutions.
METHODOLOGY
This KPI is calculated in compliance with our Corporate Information Policy and our internal
consolidation manual for non-financial information. The Business Units report on a
monthly, quarterly, and annual basis, the total electricity consumption by type (renewable
or non-renewable).
Total electricity consumption (in MWh): is the sum of all electricity consumption of FEMSA.
Total electricity consumption of renewable energy (in MWh): is the sum of the total electricity
consumption generated by renewable sources. As of March 2023, FEMSA uses the following
generation technologies: wind energy, solar energy, and organic waste biomass (using only
sugar cane bagasse as a feedstock)39.
Currently, FEMSA does not use unbundled energy attribute certificates (e.g. renewable energy cer-
tificates (“RECs”), green electricity products or similar. Our strategy to reach our Renewable Energy
targets will prioritize self-generation and power purchase agreements (“PPAs”). FEMSA may use other
renewable energy sourcing methods in select markets in the future, only where self-generation or
PPAs are not available or adequate for our operations.
35 Measured as tonnes of waste recycled or reused divided by tonnes of total operational waste.
36 Inorganic growth is not included as part of the SPTs.
37 A sample of the scope of the information was verified by Ernst & Young (EY) as an independent third party.
38 Due to local regulatory requirements, it must be disposed to landfill and/or be incinerated without energy recovery.
39 FEMSA may, in the future, utilize other sources of renewable energy, such as tidal energy, small-scale hydropower (less than 25MW), or biomass from sustainably sourced feedstock that does not compete with food sources. In some
geographies, FEMSA may not be able to procure renewable energy via power purchase agreements or on-site generation or distributed energy; in these contexts, FEMSA may choose to purchase green tariffs or renewable energy credits. We will
communicate the sources of renewable energy consumed in our annual reporting.
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2. Calibration of Sustainability Performance Targets (SPT)
2.2. Renewable energy
2.1. Zero Operational Waste to Landfill
(Circular economy)
SPT 1.1: Increase the percentage of waste diverted from landfills to 65% by 2025
SPT 1.2: Increase the percentage of waste diverted from landfills to 100% by 2030
SPT 2.1: Increase the annual sourcing of renewable electricity to 65% by 2025
SPT 2.2: Increase the annual sourcing of renewable electricity to 85% by 2030
BASELINE
BASELINE
In 2019, we established a plan to commit to zero operational waste to landfill by 2030. The
baseline year for this plan is 2019, due to the validation of the data collection methodology
used.
2022 Result
In 2022, information coverage increased to include Caffenio and Coca-Cola FEMSA Venezue-
la, and work was carried out on the implementation of the circular economy strategy to meet
the goal. The waste generation average for Proximity OXXO stores was updated. Progress was
shown from 2019 to 2022, improving from 15.9 kg/day/store (before COVID-19 Pandemic) to
10.3 kg/day/store.
FEMSA set 2017 as the baseline year, in order to include a record of at least a 3-year baseline
before setting the commitment year of 2021. The commitment was set in 2020 in order to align a
10-year timeframe for this target to the United Nations Sustainable Development Goals timeline.
2022 Result
During 2022, 210 renewable energy consumption points were included in different FEMSA
Business Units.
Compared to 2021, in 2022 we have a decrease in the % of renewable energy due to the
significant increase of proximity stores that are not able to receive renewable energy yet.
Name
KPI 1: Zero
Operational
Waste to Landfill40
2018
2019
(baseline)
2020
2021
2022
2025
Target
2030
Target
63%41
52%
53%
53%
68.7%
65%
100%
Name
KPI 2:
Renewable
Energy42
2022 includes an updated waste generation average for OXXO stores, and information on Caffenio and
Coca-Cola Venezuela.
2017
(baseline)
2018
2019
2020
2021
2022
2025
Target
2030
Target
22%
23%
48%
60%
61%
58%
65%
100%
40 In 2022, KPI 1: Zero Operational Waste to Landfill, does not consider hazardous waste in the calculation.
41 The operational waste for OXXO stores is measured using a sample calculation method that was updated in 2022.
42 Historical data varies slightly from data reported on FEMSA’s website, largely due to data for Venezuela being excluded from the reporting on our website. Venezuela is included for the purposes of the calculation of our SPT.
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3. Bond Characteristics
4. Reporting
Unless otherwise indicated in specific offering documents, FEMSA is not required to use its
sustainability-linked bonds’ net proceeds for investments in green or social projects.
Performance information will be kept public and available in the Annual Report until the
Sustainability Performance Targets (SPT) for each Key Performance Indicator (KPI) are achieved.
The report will contain:
If one of the SPTs has not been reached at the target observation date, as per the annual
reporting published following the target observation date, FEMSA will have to pay a higher
interest rate on its securities. The mechanism for payment of such interest rate will be specified in
the final terms of the securities offered.
POTENTIAL CHANGES TO CALCULATION
Both KPIs apply to 100% of FEMSA business units at the issuance date of the Sustainability-Linked
Bond and organic growth projections are applied for the following years.
For purposes of the Sustainability Performance Targets and the calculation of the Zero
Operational Waste to Landfill and Renewable Energy Percentages, certain potential events,
such as significant acquisitions or divestitures, or changes in the regulatory environment, can
substantially impact the calculation of the KPI, and may require the restatement of the SPT and/or
pro-forma adjustments of baselines or KPI scope. Any such readjustment will be communicated
within FEMSA’s annual reporting on the KPIs.
Information on the performance of the selected KPI;
Verification assurance report relative to the SPT outlining the performance against the SPT
and the related impact, and timing of such impact, on a bond’s financial performance; and,
Any relevant information enabling investors to monitor the progress of the SPT.
Information may also include when feasible and possible:
Illustration of the positive sustainability impacts of the performance improvement; and/or
Any re-assessments of KPIs and/or restatement of the SPT and/or pro-forma adjustments
of baselines or KPI scope.
5. Verification
FEMSA’s Sustainability-Linked Bond Framework has been reviewed by Sustainalytics who provided
a second party opinion (‘SPO’), confirming the alignment of the Framework with the Sustainability-
Linked Bond Principles (SLBP) 2020 as administered by ICMA. The SPO will be made available on
Sustainalytics website and in the following link:
https://femsa.gcs-web.com/es/sustainable-finance/.
Our performance on KPIs for waste diverted from landfills and renewable electricity
consumption during 2022, was reviewed by Ernst & Young (EY) as an independent third
party. For details of EY’s review, please see “ESG Independent Limited Assurance Report”
Section of this Report.
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DISCLAIMER
This Framework does not constitute a recommendation regarding any securities of FEMSA or any affiliate of FEMSA. This Framework is not, does not contain and may not be deemed to constitute
an offer to sell or a solicitation of any offer to buy any securities issued by FEMSA or any affiliate of FEMSA. In particular, neither this document nor any other related material may be distributed or
published in any jurisdiction in which it is unlawful to do so, except under circumstances that will result in compliance with any applicable laws and regulations. Persons into whose possession such
documents may come must inform themselves about, and observe any applicable restrictions on distribution. Any bonds or other securities that may be issued by FEMSA or its affiliates from time to
time, including any Sustainability-Linked Securities, shall be offered by means of a separate prospectus or offering document in accordance with applicable laws, and any decision to purchase any such
securities should be made solely on the basis of the information contained in any such prospectus or offering document provided in connection with the offering of such securities, and not on the basis
of this Framework.
The information and opinions contained in this Framework are provided as of the date of this Framework and are subject to change without notice. Neither FEMSA nor any of its affiliates assumes any
responsibility or obligation to update or revise such statements, regardless of whether those statements are affected by the results of new information, future events or otherwise. This Framework
represents current FEMSA policy and intent, is subject to change and is not intended to, nor can it be relied on, to create legal relations, rights or obligations. This Framework is intended to provide
non-exhaustive, general information. This Framework may contain or incorporate by reference public information not separately reviewed, approved or endorsed by the FEMSA and accordingly, no
representation, warranty or undertaking, express or implied, is made and no responsibility or liability is accepted by the FEMSA as to the fairness, accuracy, reasonableness or completeness of such
information. This Framework may contain statements about future events and expectations that are “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are generally identified through the inclusion of words such as “aim,” “anticipate,” “believe,” “drive,” “estimate,” “expect,” “goal,” “intend,” “may,” “plan,” “project,” “strategy,”
“target” and “will” or similar statements or variations of such terms and other similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results
to differ materially from those predicted in such statements. None of the future projections, expectations, estimates or prospects in this document should be taken as forecasts or promises nor should
they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or
exhaustive or, in the case of assumptions, fully stated in the Framework. No representation is made as to the suitability of any Sustainability-Linked Securities to fulfil environmental and sustainability
criteria required by prospective investors.
This Framework does not create any legally enforceable obligations against FEMSA; any such legally enforceable obligations relating to any Sustainability-Linked Securities are limited to those expressly
set forth in the legal documentation governing each such series of Sustainability-Linked Securities. Therefore, unless expressly set forth in such legal documentation, FEMSA’s failure to adhere or
comply with any terms of this Framework, including, without limitation, failure to achieve any sustainability targets or goals set forth herein, will not constitute an event of default or breach of contractual
obligations under the terms and conditions of any such Sustainability-Linked Securities. Factors that may affect FEMSA’s ability to achieve any sustainability goals or targets set forth herein include (but
are not limited to) market, political and economic conditions, changes in government policy (whether with a continuity of the government or on a change in the composition of the government), changes
in laws, rules or regulations, and other challenges.
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ESG independent limited assurance report
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SASB index
Business Code
Accounting Metric
Unit of Measure
Answer in table, omissions, and/or modifications
Fleet Fuel Management
FB-FR-110a.1
Fleet fuel consumed
Percentage renewable
Air Emissions from Refrigeration
Gigajoules (GJ)
772,508, includes OXXO Stores and OXXO CEDIS
Percentage (%)
0
FB-FR-110b.1
Gross global Scope 1 emissions -
refrigerants
tonnes of CO2e
232,187
Energy Management
(1) Operational energy consumed
Gigajoules (GJ)
6,691,348
FB-FR-130a.1
(2) percentage grid electricity
(3) percentage renewable
Percentage (%)
Percentage (%)
41
59
O
X
X
O
Food Waste Management
FB-FR-150a.1
Data Security
Amount of food waste diverted from
the waste stream
tonnes
FB-FR-230a.2
Description of approach to
identifying and addressing data
security risks
n/a
1,170.84 tonnes of food donated and diverted from the waste stream
For all our businesses, including Proximity, our customers, suppliers and businesses’ information security
is very important. For this reason, specialized personnel have been assigned and processes and tools
have been implemented to strengthen cybersecurity capabilities with a risk management approach. This
allows businesses to comply with regulatory provisions and market demands, as well as meet our mobility
and flexibility collaborators’ needs in a safe environment and with remote work authorization.
For several years, an information security model has been implemented through which the administration
is aware of and is involved in the definition of the security strategy. It considers the most relevant priorities
and initiatives and establishes commitments with the aim of increasing Business Units’ maturity in their
abilities to anticipate, protect, and respond to threats that could impact the availability, confidentiality and
integrity of information.
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Business Code
Accounting Metric
Unit of Measure
Answer in table, omissions, and/or modifications
Food Safety
FB-FR-250a.2
(1) Number of recalls
(2) number of units recalled
Number
In FY22, we had 8 food recalls in OXXO, Mexico 2, Chile 4 and Peru 2.
The number of units recalled were 283,977.
(3) percentage of units recalled that
are private-label products
Percentage (%)
0
Product Health & Nutrition
FB-FR-260a.2
Discussion of the process to identify
and manage products and ingredi-
ents related to nutritional and health
concerns among consumers
n/a
OXXO Mexico currently has a nutritional analysis matrix with 100% of Own Brand edible products that
covers the nutritional and health concerns among consumers.
O
X
X
O
Labor Practices
FB-FR-310a.1
(2) Percentage of in-store and
distribution center employees
earning minimum wage, by region
Percentage (%)
100% of employees in our Mexico distribution facilities received pay above state minimum wage
thresholds.
Management of Environmental & Social Impacts in the Supply Chain
Discussion of strategy to manage
environmental and social risks within
the supply chain, including animal
welfare
Discussion of strategies to reduce
the environmental impact of pack-
aging
n/a
n/a
FB-FR-430a.3
FB-FR-430a.4
Activity Metric
The guiding principles are communicated to our suppliers, and we are currently working on consolidating
the commitment letters.
We evaluated the environmental impact of all products’ packaging, including our Own Brand products. We
are currently working on developing an interdisciplinary team to address this issue and structure mitiga-
tion strategies.
FB-FR-000.A
Number of (1) retail locations
Number
See “Retail” section
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Business Code
Accounting Metric
Unit of Measure
Answer in table, omissions, and/or modifications
a
c
i
t
s
i
l
o
S
n
o
i
s
i
v
i
D
h
t
l
a
e
H
Greenhouse Gas Emissions
TR-RO-110a.3
(1) Total fuel consumed
Gigajoules (GJ)
4,192,566
(2) percentage natural gas
Percentage (%)
8
Fleet Fuel Management
FB-FR-110a.1
Fleet fuel consumed
Gigajoules (GJ)
4,192,450
Energy Management in Retail
HC-DR-130a.1
(1) Total energy consumed
Gigajoules (GJ),
548,456
(2) percentage grid electricity
(3) percentage renewable
Percentage (%)
(4) percentage energy - no electricity
73
15
12
Drug Supply Chain Integrity
HC-DR-250a.1
Description of efforts to reduce the
occurrence of compromised drugs
within the supply chain
n/a
In our Health Division we have various processes such as drug storage, quality control audits, medical
devices and pharmaceutical supplies; Cold chain conservation; Inventories procedure; Technical reception
procedure, among others.
At CEDIS MEXICO there are regulation standards and evaluations to measure their compliance. The
results are communicated to those responsible for operations to define the improvements.
In Colombia, the Health Division focuses its efforts on the prevention of waste generation through the
application of the following processes:
1. Application of the monthly overstock process, which focuses on collecting products with no
turnover or coverage of more than 90 days.
2. Identification of products that are about to expire to label them for priority delivery on a monthly
basis.
3. Weekly merchandise relocation process: aimed at identifying expiring products to relocate them
between selling points and guarantee their timely sale.
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Business Code
Accounting Metric
Unit of Measure
Answer in table, omissions, and/or modifications
Patient Health Outcomes
HC-DR-260b.1
First fill adherence rate
Percentage (%)
NA
HC-DR-260b.2
Description of policies and practices
to prevent prescription dispensing
errors
n/a
n
o
i
s
i
v
i
D
h
t
l
a
e
H
In Chile we have a strategy to recognize errors, identify underlying causes, and implement preventive
actions to avoid dispensing errors. During 2022, an internal awareness campaign was carried out through
audiovisual elements and more than 4,000 hours of synchronous and asynchronous online training given.
There are also computer alerts installed at all POS that are triggered when store clerks are about to sell
a product whose name is similar to other existing drugs. This guarantees the sale of the correct product.
Potentially riskier drugs are stored in special units to regulate access.
In Colombia we have control and management strategies and have adjusted our dispensing and storage
policies to improve the organization’s criteria on similarity risks. Regarding training, we sensitized and
trained 463 collaborators related to these issues. We also conducted virtual compliance courses and
launched a new dose calculation course.
We have a safe use advisory line to review cases before, during, and after dispensing. Thanks to more
than 777 hours of pharmaceutical chemists’ consultation, 7,505 doses were reviewed and delivered. As
part of the strategies focused on Patient Education, our pharmaceutical chemists offer personalized atten-
tion and guidance on proper drug use to 1.6 million users through 37,391 consultations. They also advise
doctors on how to promote patients’ adherence to properly use medications and treatments.
During 2022, the Community Pharmacy project began to educate patients on Diabetes and its
pharmacological treatment.
In Ecuador we have a prescription management procedure that includewatory requirements. We also
establish processes to assess, quantify, and communicate adherence to these standards.
Activity Metrics
HC-DR-000.A
Number of pharmacy locations
HC-DR-000.C
Number of prescriptions filled
HC-DR-000.D
Number of pharmacists
Number
Number
Number
See “Retail” section
465,083
8,503
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UN sustainable development goals
GOAL
1. No Poverty
2. Zero Hunger
3. Good Health & Wellbeing
4. Quality Education
5. Gender Equality
FEMSA contribution
Economic Development
Water Management
Human & Labor Rights
Community Wellbeing
Human & Labor Rights
Community Wellbeing
Climate Action
Water Management
Human & Labor Rights
Diversity, Equity and Inclusion
Integral Wellbeing
Human & Labor Rights
Integral Wellbeing
Human & Labor Rights
Diversity, Equity and Inclusion
Corporate Responsibility
6. Clean Water and Sanitation
Water Management
7. Affordable and Clean Energy
Climate Action
8. Decent Work and
Economic Growth
Economic Development
Human & Labor Rights
Diversity, Equity and Inclusion
Integral Wellbeing
9. Industry, Innovation,
and Infrastructure
Climate Action
Circular Economy
10. Reduced Inequalities
Economic Development
Human & Labor Rights
Diversity, Equity and Inclusion
Integral Wellbeing
GOAL
11. Sustainable Cities and
Communities
12. Responsible Consumption and
Production
13. Climate Action
15. Life on Land
16. Peace, Justice, and Strong
Institutions
17. Partnerships for the Goals
FEMSA contribution
Community Wellbeing
Economic Development
Climate Action
Water Management
Circular Economy
Community Wellbeing
Economic Development
Sustainable Sourcing
Climate Action
Water Management
Circular Economy
Corporate Responsibility
Ethical & Socially Responsible Behavior
Fiduciary Responsibility
Community Wellbeing
Climate Action
Community Wellbeing
Water Management
Integral Wellbeing
Corporate Responsibility
Ethical & Socially Responsible Behavior
Fiduciary Responsibility
Community Wellbeing
Economic Development
Sustainable Sourcing
Climate Action
Water Management
Circular Economy
Integral Wellbeing
Corporate Responsibility
Ethical & Socially Responsible Behavior
Fiduciary Responsibility
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contact
FEMSA Corporate Offices
Monterrey
General Anaya Nº 601 Pte.
Col. Bella Vista
Monterrey, Nuevo León, Mexico
C.P. 64410
Mexico City
Lago Alberto Nº 442
Col. Anáhuac II Sección
Miguel Hidalgo
Mexico City, Mexico
C.P. 11320
FEMSA Foundation
General Anaya Nº 601 Pte.
Col. Bella Vista
Monterrey, Nuevo León, Mexico
C.P. 64410
www.facebook.com/FEMSA/
twitter.com/femsa
linkedin.com/company/femsa
www.instagram.com/femsa_oficial/
www.youtube.com/femsa
www.tiktok.com/@somosfemsa
General Counsel
Independent Accountant
Alejandro Gil Ortiz
General Anaya Nº 601 Pte.
Col. Bella Vista
Monterrey, Nuevo León, Mexico
C.P. 64410
Investor Relations
Juan Fonseca Serratos
Enrique Manero Martínez
investor@femsa.com
Mancera, S.C.
Integrante de Ernst & Young Global Limited
Av. Ricardo Margain Zozaya Nº 335, Floor 14
Col. Valle del Campestre,
San Pedro Garza García,
Nuevo León, Mexico
C.P. 66265
Corporate Communications
Depositary Bank and Registrar
Mauricio Reyes López
Erika de la Peña Ibarra
comunicacion@femsa.com
Sustainability
Víctor Manuel Treviño Vargas
Gabriel Adrián González Ayala
sostenibilidad@femsa.com
BNY Mellon Shareowner Services
P.O. Box 505000
Louisville, KY 40233-5000
Direct Mailing for overnight packages:
BNY Mellon Shareowner Services
462 South 4th Street, Suite 1600
Louisville, KY 40202
Toll free number for U.S. calls: +1 888 269 2377
International calls: +1 201 680 6825
www.mybnymdr.com
shrrelations@cpushareownerservices.com
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Stock Markets and Symbols
Fomento Económico Mexicano, S.A.B. de C.V. stock trades
on the Bolsa Mexicana de Valores (BMV) in the form of units
under the symbols FEMSA UBD and FEMSA UB. The FEMSA
UBD units also trade on The New York Stock Exchange, Inc.
(NYSE) in the form of ADRs under the symbol FMX.
We are members of the Dow Jones Sustainability MILA Pacific
Alliance Index, the FTSE4Good Emerging Index and the
Mexican Stock Exchange Sustainable IPC, among other indices
that evaluate our performance in sustainability.
For more extensive information, including the
Audited Financial Statements, please visit us at:
www.femsa.com
https://femsa.gcs-web.com/
investor@femsa.com.mx
General Anaya Nº 601 Pte.
Col. Bella Vista
Monterrey, Nuevo León, Mexico
C.P. 64410
Cautionary statement regarding forward-looking statements
The FEMSA Integrated Annual Report 2022 may contain certain forward-looking statements concerning FEMSA and its subsidiaries’ future performance and should be considered as good faith
estimates of FEMSA and its subsidiaries. These forward-looking statements reflect management expectations and are based upon currently available data. Actual results are subject to further events
and uncertainties, which could materially impact the Company’s and its subsidiaries’ actual performance.
2022 integrated annual report
www.annualreport.femsa.com