SUSTAINABILITY ACTIVITIES



SOCIAL PERFORMANCE

Regarding sustainability, the Carlos Slim Foundation operates more than 100 programs and projects in 13 different areas, among them education; employment; health; sports; the environment, and culture, reaching millions of beneficiaries in Mexico and other Latin American countries.

The “Mexico United” Program continues to address the damages caused by the earthquake of September 2017, applying the resources contributed by donors, which the Carlos Slim Foundation multiplies six times. The said resources have repaired 246 schools, 2,285 homes, 104 hospitals, 4 markets and rehabilitated or rebuilt 48 cultural patrimony structures in Mexico, principally in Mexico City, Morelos, the State of Mexico, and Oaxaca. Every month the Mexico United Program publishes an activities report to keep donors and the general public informed in regard to the progress accomplished.

In 2020, in response to the COVID-19 pandemic caused by the appearance of the Sars-CoV-2 corona virus, the Carlos Slim Foundation responded with permanent actions in support of the population. The most important of those actions, among others, are:

• The collaboration agreement signed between FCS and AstraZeneca to contribute to the production and distribution, at no profit, of 150 million COVID-19 vaccinations in Latin America. 77.4 million of those vaccinations are for Mexico. The vaccine, developed by the University of Oxford and AstraZeneca, will help to prevent a greater loss of human lives and to revive the economy. Also participating in the collaboration agreement are the biotechnology companies mAbxience of Argentina and Liomont of México, as well as the governments of several Latin American countries.

• Support to the conversion of spaces to spaces for the treatment of COVID-19 in three of the largest cities in Mexico: Mexico City, Guadalajara, and Monterrey. One of the most important of those converted spaces is the Temporary COVID-19 Unit (UTC-19) of Mexico City, in which more than 8,200 patients have been treated up to March 31 of 2021. The UTC-19 has 617 beds, 60 of them for therapy.

• Contribution to the diagnostic capacity of the country by the donation of equipment and more than half a million kits for COVID tests to the Diagnostic and Epidemiological Reference Institute laboratories (INDRE), the State Public Health laboratories and to highly specialized National Health Hospitals such as the Salvador Zubiran National Institute of Medical Science and Nutrition, the National Institute of Respiratory Diseases (INER) and the General Hospital of Mexico.


• The donation of more than 2.2 million pesos worth of Personal Protection Equipment for health workers (N95 masks; surgical masks; standard polycarbonate safety goggles; discardable gloves; gowns, caps and discardable surgical shoe covers), as well as other medical equipment (vital support ventilators). The Foundation also contributed, along with other organizations, to the development and production of the first ventilators made in Mexico for the treatment of seriously ill patients.

• Contribution of food for the health personnel in 35 public hospitals, donating, up to the present date, more than 1.7 million pesos in meals elaborated by Sanborns for more than 4 thousand health professionals and workers in the said hospital centers.

• Support to the research and protocols for the treatment of COVID-19 patients in the National Institute of Respiratory Diseases (INER), the Salvador Zubiran National Institute of Medical Science and Nutrition, and the National Institute of Cancerology.

• The creation of a tutorial and courses hub for health professionals; the elaboration of protocols for the containment of the pandemic and for the return of workers to their jobs; the creation of a site with information on COVID-19, with downloadable graphic material and audio-visual videos for the public in general.

In addition to the Foundation’s activities, Grupo Carso maintained investments in education, health, infrastructure and community development through the following initiatives:

• Corporate volunteering in Condumex work centers

• Participation in annual campaigns for the prevention and control of medical ailments in collaboration with the Carlos Slim Health Institute

• The Carso Training Centers for the public in general

• The Carso Research and Development Center (CIDEC)

• Academic linkage for technological innovation projects by Condumex and Carso Infraestructura y Construcción.

• Program for the rescue of real estate assets in Sanborns,


• Program for the contracting of persons with disabilities in Sanborns and Sears through the Mexican Confederation of Organizations for Persons with Disabilities (CONFE), the Multi-Attention Center (CAM), the YMCA and DIF.

• Free courses in the platform “Train yourself for a job” of the Carlos Slim Foundation, accessible to the public, along with the Bolsa de Trabajo (Jobs Basket), which includes recruitment procedures for companies of the Carso group.

• The Organ Donation campaign, on a national level, with all the Group’s employees and their families, through videos, chats and triptychs, with 5,570 Sears collaborators in 46 localities and 77 volunteers.

For more information go to www.fundacioncarlosslim.org/

ENVIRONMENTAL PERFORMANCE

Grupo Sanborns

One of Grupo Sanborns characteristics is its scrupulous compliance with the environmental standards to which it is subject. It takes great care in ensuring, in each of the units or establishments in which it operates, that all the corresponding authorizations have been obtained and that all the environmental requirements are being observed. It pays special attention to matters concerning the control and management of residual waters, emissions into the atmosphere, and the management and final disposal of solid residues and dangerous materials when they must necessarily be generated in the operation of its business. Towards these effects, it normally contracts the services of specialized companies, duly authorized by the respective environmental or sanitary authorities. In this sector Grupo Sanborns has a low environmental impact.

Grupo Condumex

In 2020, 16 work centers of the Condumex Group, including the Automotive Cables and Parts sector, had a certification in the ISO 14001:2015 standard. Eight of the said work centers have a third party certification and the other eight have an internal certification issued by the CIDEC. Seven work centers do not yet have a certification because they are engaged in the process of implementation of an environmental management system.

The work centers recorded a total consumption of energy of 140,090,178 kWh, of which the consumption of clean energy was 89,697,277 kWh, while their consumption of self-generated renewable energy from solar panels was 1,788,672 kWh.

In regard to the consumption of water in the 25 work centers, a total consumption of 339,541 cubic meters was recorded, with a discharge of 64,501 cubic meters.

In the reutilization and recycling of residues requiring special handling, a total of 6,190,440 kilograms of residues requiring special handling was collected and recycled. Of this total, 1,057,128 kilograms were paper and cardboard, 651,829 kilograms was PET and plastic, and 476,333 kilograms was aluminum. 411,530 kilograms of dangerous residues and 162,025 kilograms of used oil were sent to be treated and for final disposal.

In the Cables Sector, the Company Latincasa maintains a nursery with 1,038 plant specimens of various species, 32 of which are classified as protected species to some degree or other, in accordance with the NOM-059-SEMARNAT-2010 standard, while the other 1,006 specimens are kept in a nursery that was installed in 2013, in which plant species that are appropriate for reforestation activities in the industrial zone of San Luis Potosi are maintained and reproduced.

The IEM Plant submitted its voluntary report, through the GEI Program on gas emissions that produce the greenhouse effect, sponsored and coordinated by CESPEDES and the Sub-Secretariat of Environmental Development and Standardization of the SEMARNAT (Secretariat of the Environment and Natural Resources).

The Company NACEL of Vallejo and Latincasa continue to hold their Clean Industry designation, and NACEL of Guadalajara was awarded the title of Environmental Leader by the Secretariat of the Environment and Territorial Development (SEMADET), becoming the only Company in Jalisco to earn that designation.

In 2020 the “Recycling Against Cancer” campaign was continued, during which 729 Kilograms of plastic caps were gathered and donated to the “Banco de Tapitas, A.C.” associations and to the Asociación Mexicana de Ayuda a Niños con Cáncer I.A.P (AMANC, Mexican Association for Assistance to Children with Cancer). The plastic caps are recycled and the funds thus raised are used by the associations to assist persons with cancer by providing them with information, orientation, caregivers and medications.

Finally, Condumex reaffirms its commitment of continuing to offer technological solutions to the most demanding markets and industries with innovations such as the MinLed Cable, the most sophisticated cable in the mining industry, which, in addition to ensuring continuous operation because of its luminescence, can now be illuminated in other colors that make it visible even under snow.

Carso Infraestructura y Construcción, S. A. de C. V.

In the Infrastructure and Pipeline sectors, their environmental certifications under the international ISO 14001:2015 standard continue to be valid. In 2020 the certificate of compliance under the requirements of the NMX-SAA-14001-IMNC-2015 / ISO 14001:2015 Standard for the design, fabrication, repair and maintenance of offshore platforms, as well as for the fabrication of structural pipes and components of metal-mechanical structures, continues to be in effect, and valid until August 31 of 2023.

In the Infrastructure, Pipelines, Civil Construction and Central sectors, the Company continues with the implementation of its Plan for the Handling of Residues (residues requiring special handling and dangerous residues), in which a total of 764,111 Kg of residues were no longer sent to a sanitary landfill, with several environmental benefits. Additionally, 6,690 Kg of paper and cardboard, 1,230 kg of PET and plastic, and 13,214 kg of aluminum were recycled. In 2020, 216,267 kg of dangerous residues were disposed of, including 8,669 Kg of used oil, all in an environmentally adequate manner.

In 2020, in spite of the pandemic and with the purpose of propitiating environmental awareness, the company’s personnel continued to participate in the “Recycling Against Cancer” campaign with the collection and recycling of a total of 228 kg of plastic caps, which were donated to the “Banco de Tapitas” of the “Alianza Anticancer, A.B.P” Association and to the “Angeles en Libertad A.C” Association. In the “Pilotón” campaign a total of 10 kg of used alkaline batteries was collected.

In the rescue and relocation of flora and fauna activities there is presently a total of 11,013 specimens of flora and 1,387 specimens of fauna that have been rescued and relocated. In these groups, 5,111 specimens of flora and 307 of fauna are considered to be threatened to some degree or other, according to the NOM059-SEMARNAT-2010 Standard.

In the “Las Varas -Vallarta” project, the restoration of 450 linear meters of low caducifolic jungle was carried out, with the planting of 150 specimens of Tabebuia rosea, Tabebuia donnel smithii, Enterolobium cyclocarpum, Ceiba pentrandra and Bursera simaruba, from a materials bank located in Las Lomas, Ejido Sayulita, Municipality of Bahia de Banderas, in the state of Nayarit.

LABOR, HEALTH AND SAFETY PERFORMANCE

Grupo Carso is a source of employment for more than 76 thousand full and part-time workers in Mexico, Latin America and some countries in Europe. In 2020, the number of jobs decreased by 1.8% from the previous year. The Group’s employees have salaries that are in accordance with the laws, market, performance and level of responsibility within the areas in which they are employed.

2018 2019 2020 Var% 2020-2019
Officers
Key personnel
Unionized

997
0

1,046
0

1,055
0

0.9%
0.0%
Officers
Key personnel
Unionized

20,993
33,892

21,336
34,526

21,981
28,718

3.0%
-16.8%
Officers
Key personnel
Unionized

5,278
12,278

8,862
11,885

3,102
21,395

-65.09%
80.0%

73,438

77,655

76,251

-1.8%


Among the benefits in place in the three Divisions of Grupo Carso are the following:

• Digital scholarships and scholarships for the employees’ children and direct family members.

• Home Office Program, flexible hours for parents, economic assistance for funeral expenses, and paid holidays.

• Self-Managed Health and Safety Insurance Program in the workplace in Grupo Condumex,

• Developing Professionals Program in Carso Infraestructura y Construcción and Condumex (PRODES),

• Health prevention campaigns in collaboration with the Mexican Social Security Institute (IMSS) and the Secretariat of Health (SSA).


• Civil Protection Programs, with the training of volunteer brigades.

• Personal development programs, through ASSUME, CRESE and the Social Welfare Program.

• Courses through the “Train Yourself for a Job” platform of the Carlos Slim Foundation for the basic training of operations personnel.

• Training and Instruction Programs in sales and management skills

• Courses, conferences, and workshops delivered by the Carso Training Center.

Courses in technical, operational, formative, development, safety and health training

In 2020, a total of 51,469 courses, which were completed by 386,014 trainees, were held in Carso Infraestructura, Condumex, Sears, Sanborns, Promotora Musical, Dax and Saks Fifth Avenue. Upon the opening and reopening of stores, 162 persons were trained in Sanborns. Regarding the training of personnel in Sears, an average of 53 courses per employee were held, and 697 managers and supervisors were trained according to their functions. A physical presence seminary was held, as well as a virtual classroom with 833 awareness-of-product events. In ClaroShop an average of 2 courses per collaborator were delivered. Additionally, 6,338 persons were trained as team members in Condumex and CICSA.

In Sears, the Carso platform “Train Yourself for a Job” of the Carlos Slim Foundation was installed. The platform contains courses that improve the skills of all the employees in the units, corporate divisions and distribution centers, and the courses have produced a total of 155,176 certificates and 6,840 registered collaborators.




Flexible Hours and Professional Development Programs.

In 2020 in Carso Infraestructura and Condumex 2,647 employees benefitted from the Home Office program, a huge increase compared against the total of 98 persons the previous year, and which was the result of the COVID-19 pandemic.


HOME OFFICE
2,647 collaborators




Scholarships

633 Telmex scholarships were awarded to employees or their children during the year.

2020 2019
Digital scholarships -
Announcement

for children of employees
W/A 699
Telmex scholarships -
2019 announcement

for direct family members and
employees
633 714

W/A Without Announcement

ASUME

The ASUME program (Association for the Progress of Mexico) reached 186 groups, 4,076 collaborators and 354 facilitators graduated from Grupo Carso companies.

ASUME Groups Participants Facilitators
2020 186 4,076 354
2019 280 3,477 239
Var% 20 vs. 19 -33.5% 17.2% 48.1%

Social Welfare

3 fundamental aspects were a part of the Social Welfare program: Training, Health and Culture, and Recreation, all of which included activities through video conferences to a massive degree. In 2020 events were organized in which 93,678 persons benefitted from the various programs, including collaborators and family members of collaborators.

Social Welfare Collaborators
2020 93,678
2019 60,369
2018 41,672
Var% 20 vs. 19 55.1%

CRESE







The Human Quality and Social Responsibility Management System was continued in the Company CRESE, in which 95 units were audited internally in Sears in 2020.


Train Yourself for a Job

In the Carlos Slim Foundation “Train Yourself for a Job” platform work continued, both as a form of entertainment and as a means for developing talent for operational maintenance and sales in Sears, producing a total of 1,540 certificates in 2020, compared to 550 collaborators in the previous year.

With the support of the Carlos Slim Foundation, actions were established for prevention and care, to thereby minimize the effects of the COVID-19 pandemic. The strategy towards that end was developed in 5 stages: awareness; prevention; containment; supervision; and continuous improvement.

The Mexican Center for Philanthropy (CEMEFI) awarded the Socially Responsible distinction to Grupo Condumex for the ninth consecutive year, and to Carso Infraestructura y Construcción for the tenth consecutive year.

Companies with the Socially Responsible distinction:
CONDUMEX: 9 consecutive years
CICSA: 10 consecutive years
Large Companies 2020
Small Companies PYMES 2020
Concensol, S.A de C.V Servicios Integrales GSM, S de R.L de C.V
Operadora Cicsa, S.A de C.V Conticon, S.A de C.V
Cordaflex S.A, de C.V Conalum, S.A de C.V
Condumex, S.A de C.V
Carso Infraestructura y Construcción, S.A de C.V
Arneses Eléctricos Automotrices, S.A de C.V
Arcomex, S.A de C.V
Arneses Electrónicos Arnelec, S.A de C.V

Yammer

The main benefits from using the “Yammer” tool consist in the promotion of a digital transformation culture, providing communication in real, fluid, and spontaneous time, as well as creating integration between workers and the workplace. The Grupo Carso Code of Ethics was disseminated to all its personnel in 2020 through the “Carso Train Yourself” platform.

For more information and details on sustainability activities, please refer to the sustainability activities section of Grupo Carso S.A.B. de C.V.'s website at the following URL: https://www.carso.com.mx/sustentabilidad/responsabilidad-social/