#1Baker McKenzie. Baker McKenzie Sustainability Report 2019-2020 Mexico Communication on Progress#2Contents 1. Message from our Managing Partner, Raymundo E. Enríquez 2. The Firm 2.1 Services.. 2.2 Sectors and Industries... 2.3 Stakeholders 3. Global Corporate Social Responsibility Strategy 4. Corporate Social Responsibility Strategy in Mexico 4.1 Membership in the Global Compact Local Network and Our Impact on the Firm's Priority SDGs 5. Social... 5.1 SDG 5: Gender Equality. 5.2 SDG 8: Decent Work and Economic Growth 5.3 SDG 10: Reduced Inequalities. 6. Environment 6.1 SDG 7: Affordable and Clean Energy. 6.2 ODS 12: Responsible Consumption and Production 6.3 SDG 13: Climate Action 7. Economic and Governance. 7.2 SDG 16: Peace, Justice, and Strong Institutions 7.3 SDG 17: Partnership for the Goals.......... 8. Awards and Recognitions. 9. Special COVID-19 Chapter. 10. Closing 3 50 6 6 .6 7 .10 11 12 14 14 .18 23 26 30 .31 33 www 35 .37 38 45 47 50#3wwww Message from our Managing Partner#4Baker McKenzie is a global firm whose social and environmental commitment lies in positively transforming the communities in which it operates. Since 2015, we have been signatories of the United Nations Global Compact (UNGC), aligning our goals and strategies with its Ten Principles on human rights, labor rights, the environment and anti-corruption. Likewise, in recent years, we have guided our actions towards the United Nations' Sustainable Development Goals (SDGs). We know that our impact is based primarily on the relationships we build with our stakeholders and therefore, we understand the importance of measuring our progress in that regard. We know that reducing inequalities, environmental impact and working for peace and legality is largely the goal, not only of governments and civil societies, but also of the private sector. As part of this last area, we actively contribute to this purpose through programs and initiatives, as well as through close alliances with those who share our values and vision for the future to create a better place where all people are included and improve their quality of life. In accordance with such approaches, this report aims to share the work we carry out with our talent, clients, suppliers, civil organizations, associations, media, and other stakeholders. This work is evident in the Social Responsibility programs, initiatives, and activities that we have carried out in Mexico. during fiscal years 2019 and 2020. This report includes a chapter specifically outlining the efforts we have made to address the challenges that have arisen from the pandemic caused by COVID-19, an event that has affected a number of areas globally. Personally, I would like to thank all the people and organizations that have joined our efforts to achieve these results, based on each of the actions that we implement together. Likewise, I would like to highlight the support and contribution of our collaborators whose enthusiasm and commitment make our vision as a Firm possible. Sincerely, Raymundo E. Enríquez Managing Partner Sustainability report 2019-2020 Mexico | 4#5The Firm#6Baker McKenzie is a Global Firm with presence in 46 countries. Services Stakeholders Sustainability report 2019-2020 Mexico | 6 • Environmental & Climate Change • Transactional • Beginning 1949 Offices 77 Countries 46 Partners 1,511 • • International Trade and Customs Antitrust Corporate/Mergers & Acquisitions • Tax • Banking, Finance & Major Projects Fee Earners 6,146 Global Headcount 12,080 Global Revenue $2.92 B . Labor and Employment In Mexico, we opened the first office in 1961 in Mexico City. We are currently present in five cities: Mexico City, Tijuana, Ciudad Juárez, Monterrey, and Guadalajara. During this time, we have established ourselves as leaders in the field of Firms offering legal services nationwide. • Intellectual Property and Information Technologies Dispute Resolution Sectors and Industries We are a Firm whose proposals and actions are the result of teamwork; therefore, we implement the synergy to generate a positive transcendent impact. This work involves identifying our stakeholders, as well as other actor with which we have a relationship, so that we take into account their expectations and values in order to strengthen relationships of trust and dialogue with them. Chambers & Associations Firm Members Clients Community STAKEHOLDERS Environment Tijuana Guadalajara Juarez City Monterrey • Consumer Goods and Retail Energy, Mining, and Infrastructure • Financial Institutions • Health and Life Sciences Manufacturing and Transportation • Technology Mexico City • Media and Communications Media Clearing Houses Non Profit Organisations Suppliers Government Universities For more information about our services, see our page. For more information on stakeholder interaction and dialogue mechanisms, please see our 2018 Report here.#7Global Corporate Social Responsibility Strategy#8In 2018, we conducted a global materiality assessment. This work aimed to identify the most relevant environmental, social and corporate governance (ESG) challenges for the Firm, as well as to identify the UN Sustainable Development Goals which we directly impact and that, therefore, we must integrate into our strategy. Significance to Baker McKenzie's Stakeholders Highest Business Ethics Human Rights & Labor Practices Circular Economy Global Presence & Internationalism Non-Discrimination Talent Growth & Career Growth Pro Bono Efforts Corporate■ Governance E Sustainability report 2019-2020 Mexico | 8 Workplace Diversity & Inclusion ■Employee Wellbeing Service & Advice Quality Energy, Emissions & Climate Change Data Privacy & Cybersecurity Talent Attraction, Retention & Engagement Client Intake/Screening For this, we surveyed 1,400 people from different stakeholders, both internal and external. We conducted 41 one-to-one interviews and 96 consultations with the Firm's leaders using the focus group methodology. ■ Enviromental ■ Social ■ Economical ■ Governance Lower Tier Topics A. Tax Practices B. Marketing Practices C. Community Engagement D. Supply Chain Accountability High B A M Anti-Corruption & Fraud High Significance to Baker McKenzie Highest E. Improving the Standard of Legal Practice F. Sustainable Buildings G. Rule of Law and Legislative Compliance H. Waste Management 1. Risk Management J. Environmental Stewardship K. Transparency and Public Policy L. Stakeholder Engagement and Partnerships M.Use of Artificial Intelligence (AI)#9This study identified the specific issues related to the SDGs and its 169 goals; in turn, it allowed us to determine in which of them we can have a strong impact as a Firm. Thus, the study helped identify eight priority SDGs. Raymundo E. Enríquez Managing Partner Sustainability report 2019-2020 Mexico | 9 SUSTAINABLE DEVELOPMENT GOALS 1 NO POVERTY 2 ZERO HUNGER 555 3 GOOD HEALTH AND WELL-BEING W 4 QUALITY EDUCATION 5 GENDER EQUALITY 6 CLEAN WATER AND SANITATION RESPONSIBLE CONSUMPTION AND PRODUCTION QO 7 AFFORDABLE AND CLEAN ENERGY 8 DECENT WORK AND ECONOMIC GROWTH 9 INDUSTRY, INNOVATION REDUCED 10 INEQUALITIES 11 SUSTAINABLE CITIES AND COMMUNITIES 12 er enzie. 13 ACTION CLIMATE 14 LIFE BELOW WATER 15 ON LAND LIFE 16 PEACE, JUSTICE 17 AND STRONG INSTITUTIONS PARTNERSHIPS FOR THE GOALS SUSTAINABLE DEVELOPMENT GOALS All UN Member States adopted the 17 UN Sustainable Development Goals in 2015; they are an urgent global call to action to end poverty, tackle climate change, reduce inequalities and ensure that all people enjoy peace and prosperity by 2030. Learn more about the SDGs here.#10Corporate Social Responsibility Strategy in Mexico#11Sustainability report 2019-2020 Mexico | 11 Miriam Villafaña Corporate Social Responsability Director Our presence in Mexico spans several decades, during which we have carried out social responsibility programs and initiatives. However, the area focused on Corporate Social Responsibility (CSR) is recent within our organization (mid-2017) and established with an initial three-year plan. This plan included the development of projects within and outside the organization, which allowed us to involve our main stakeholders. The area aims to make CSR a transversal issue within the Firm, immersed in the processes of the different areas, as well as in its business strategy. Internally, we understand Social Responsibility as a vision that must permeate all areas of the organization where each one of them identifies its particular contributions and aligns its processes with the general objective to build an integral and responsible culture. The above arrangement seeks to bring CSR to the forefront of the business and to involve our people through a solid internal communication program that will enable us to achieve this objective. On the other hand, externally, we develop various collaborations with our main stakeholders (clients, organizations, suppliers, and the media), in order to strengthen the impact of the programs and initiatives that we create together. In addition to encouraging participation within the Firm, we have built committees that specifically address some of the key issues to achieve our purposes. This structure aims to add different visions and capacities that strengthen us. The main committees implemented are listed below: • • • Diversity and Inclusion: Gender, LGBT+, and Disability Pro Bono: Free Legal Advice Community Service: Volunteering and Donations Sustainability: Care for the Environment Thus, in July 2020, the plan we set out to consolidate over three years ended; it is therefore time to set out a renewed vision for the next period, during which we will seek, above all, to increase our collaborative work with the stakeholders we consider a priority. Membership in the Global Compact Local Network and Our Impact on the Firm's Priority SDGS In alignment with the Firm's global strategy, we joined the UN's Global Compact Local Network in January 2020; this has allowed us to focus our CSR actions and programs opportunely. Learn more about the UNGC and Mexico's Local Network here. The SDGs will be mentioned throughout this report, as well as the Global Compact's Ten Principles and the material impacted through the programs and initiatives we undertook during this period.#12Social#135 GENDER EQUALITY 8 DECENT WORK AND ECONOMIC GROWTH 10 INEQUALITIES REDUCED The main asset we have is our talent. We are a legal firm that offers, through our teams, specific solutions to the needs of our clients. The interests that guide us contemplate implementing initiatives that promote inclusive and respectful work environments, where all members of the Firm can feel safe and have opportunities to develop professionally. In Mexico, we have a Diversity and Inclusion (D&I) Committee; whose objective is to promote initiatives within the Firm and with our stakeholders, as well as to foster an environment in which people of all races, ethnicities, cultures, genders, sexual orientation, gender identity and expression, religion, nationality, age, disability, marital and parental status can develop their professional career and fully contribute to the objectives of the Firm. This chapter highlights initiatives and programs that reflect our commitment based on the following Global Compact principles: • Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; Principle 2: make sure that they are not complicit in human rights abuses. Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; Principle 4: the elimination of all forms of forced and compulsory labor; Principle 5: the effective abolition of child labor; and • Principle 6: the elimination of discrimination in respect of employment and occupation Sustainability report 2019-2020 Mexico | 13#14Sustainability report 2019-2020 Mexico | 14 5 GENDER EQUALITY O SDG 5: GENDER EQUALITY People should have equal opportunities to develop professionally, regardless of their gender identity or expression, sexual orientation, socio-economic background, race, religion, among others. Therefore, we developed programs that promote equality and access to opportunities for all. We know that, having a better balance between men and women allows us to obtain good results in our internal processes, achieve business objectives, as well as to relate in an optimal way with our clients and other stakeholders. Our D&I Committee addresses issues related to the promotion of gender equality, with the aim of generating equal opportunities that allow women and men to develop. their professional careers within the Firm. a. Global Aspirational Targets (40:40:20) By 2025, on a global level, we have new global aspirational targets set at 40:40:20 per cent gender diversity, to represent 40% women, 40% men and 20% flexible (women, men or non-binary persons). This target applies to Partners, senior business professionals, Firm committee leadership and candidate pools for recruitment. Learn more about these goals here. b. Current Metrics in Mexico The Firm was composed of 50% women and 50% men during the period 2019-2020. The following is a breakdown of the percentages corresponding to the two groups in the organizational structure. Fee Earners: Collaborators who provide legal services to our clients organized in different practice groups. Men 147 61% د Women 93 39% Business Professionals: Collaborators who ensure the proper management of the Firm in the areas of Administration, Operations, and Finance. Men 67 35% Women 122 65% C#15Sustainability report 2019-2020 Mexico | 15 According to the information stated in the previous report, it is possible to say that gender distribution has remained similar in general terms; even so, it is worth noting that we had an 18% increase in the number of women who are leaders within the Firm. We had 54% of women promoted during this period, which has been reflected mainly in leadership positions within the Firm. This scenario brings us closer to our overall goal in terms of gender equality. The Family Leave policy promotes a uniform basis for all applicants (regardless of gender identity or sexual orientation), so that they have the possibility to take a leave (for the birth or adoption of a child) for up to twelve weeks in which they receive their full monthly compensation. For pregnancy cases, women have the option of extending their parental leave by an additional twelve weeks to those mentioned in the previous paragraph (twenty-four in total); in addition, they receive a percentage of compensation determined according to the length of absence. Family Leave also includes schemes for collaborators to return progressively to their work activities after the period of parental leave; it provides daycare support for one year and offers flexibility to address family issues, grief processes, and illnesses. Since the launch of the policy, 22 people (82% women and 18% men) have joined one of the schemes that the Firm contemplates. Roberto Macías Senior Associate Maria Jose Casillas Senior Associate d. Breastfeeding Support Program c. Family Leave Policy FamilyLeave Family Leave is a new family policy that we launched during May 2019. It considers parenthood and family life, in any of its forms, as a joint responsibility. Said perspective helps to close the gender gap.#16Sustainability report 2019-2020 Mexico | 16 As part of our commitment to gender equality, we created the Breastfeeding Support Program. The purpose of this is to give collaborators returning from maternity leave the opportunity to continue breastfeeding if that is their wish. Said program includes: • • • Breastfeeding Support Policy •Training and awareness to the members of the Firm Training mothers on the benefits of breastfeeding Adequate and available spaces for this purpose (breastfeeding rooms) Currently, we have breastfeeding rooms in the Mexico City and Guadalajara offices; we will soon open these spaces in the rest of the offices. Opening Events Mexico City: We held a conference to explain the benefits of breastfeeding by PALMA, a company of expert consultants in the field. Guadalajara: We organized an event attended by some of our clients, as well as representatives of chambers and the Ministry of Substantive Equality of the State of Jalisco. ALLEY PO DAS O e. Activities to Promote Gender Equality Baker Women Roxana Gómez Partner In each of the offices, there are affinity groups that promote gender equality locally. These groups work in coordination with the Diversity and Inclusion Committee and implement activities for their office, based on the specific needs of the cultural context. In addition to internal programs, we actively participate in external forums, events, and activities that allow us to strengthen our commitment to gender equality, women's empowerment, and professional development. Some of the activities in which we participate during this period are: Women Empowerment Principles Globally, we became signatories to the UN's Women Empowerment Principles in 2017. The purpose is to promote conditions of equality and empowerment of women in all regions. Learn more about these principles here. International Women's Day Commemoration We held various events in the offices to commemorate International Women's Day in 2019; the overall theme was "Balance for Better". Activities included client events, training sessions, expert panels, as well as networking. All this allowed us to reaffirm our position of inclusion, through open spaces for reflection by men and women who stood out as agents of change. FOR ICE FOR DET 9 BLA Nic MARK For 2020, we commemorated this day within a global context and a national movement to strengthen our commitment to generate actions every day to seek women empowerment and gender equality under the theme "Each for Equal". To do this, we made a virtual campaign in which, through videos, photos, and an institutional statement, we showed our position on this issue.#17Sustainability report 2019-2020 Mexico | 17 Involvement with Abogadas MX "I am very grateful for the opportunity to participate in this platform, where professional development and leadership of female lawyers in Mexico is promoted". Lucía Mercado, Associate of the Firm • Mentorship Program For the fifth consecutive year, we participated in the Abogadas MX Mentorship Program. During the period of this report, we have had participation from: of Global Chair of the Firm in 1999. Learn more about this forum here. WOMEN'S FORUM FOR THE ECONOM SOCIETY WOMACH Our commitment to gender equality includes partnerships to strengthen internal actions and those of our stakeholders. Therefore, since 2015 we have been working closely with Abogadas MX, a non-profit association that seeks to influence the professional careers of female lawyers in Mexico, through activities that promote women's leadership and empowerment. We were annual sponsors of the network's activities during this period and participated in several events, which are listed below: . Launching of the Nuevo León-Abogadas MX Chapter For the Abogadas MX Mentorship Program - Chapter Nuevo León, we hosted in Monterrey for its launch in 2019. Mentees: seven female associates Mentors: four partners and directors •Leadership and Professional Development Workshop We participated as sponsors of the Annual Leadership and Professional Development Workshop for Abogadas MX in the years 2018 and 2019. YOU ARE Dogadas M Red de чадро mollo Ponal Canadian Chamber Panel In March 2020, our Director of Social Responsibility, Miriam Villafaña, participated as a panelist in the International Women's Day event organized by the Canadian Chamber of Commerce. The question "Why do companies need women in management positions?" was the subject of her presentation. AGNICO ENGLE ARCANADA NICO EAGLE Scotiabank Cloded AGNICO EAGLE Scotiabank CANADA APOTEX CAN M ME ARCANADA POTE OT LOC Scot APOTEX GLDC D f. Pro Bono Issues that Impact the SDG 5 Through our efforts in pro bono legal work, we have participated in projects to support organizations that fight for gender equality in different areas. Women's Forum 2019 A group of lawyers attended, as a corporate delegation, the Women's Forum for the Economy and Society in Mexico City in May 2019. During this event, they met with Christine Lagarde; historically, she has been the first woman to hold the position Regional Projects We work in partnership with Global Rights for Women to conduct a comparative analysis of domestic violence, prevention, and justice mechanisms in various countries.#18Sustainability report 2019-2020 Mexico | 18 Local Projects We advise the following associations on various legal aspects (trademark registration, copyright, review of employment contracts, among others): Proyecto VIVE: Promotes social projects of women who are in cases of extreme vulnerability. Its purpose is to generate an income by marketing products or services. Instituto de Liderazgo Simone de Beauvoir: A feminist training center to work for gender equality, through different mechanisms Pro Mujer Inc: Tends to women in vulnerable situations. 8 DECENT WORK AND ECONOMIC GROWTH SDG 8: DECENT WORK AND ECONOMIC GROWTH We implemented programs and initiatives that allow us to build safe and respectful workplaces that favor professional development, as well as the well-being of our people. During this year, our national context, derived from the sanitary crisis due to COVID-19, made it relevant to strengthen the infrastructure that would allow us to continue operating remotely, to take care of our collaborators, to comply with official regulations, and to advise our clients. The programs established some years ago and the Firm's culture of flexibility, offered the opportunity to work remotely during quarantine. This way of working allowed us to guarantee an uninterrupted quality service to our clients. "This period was very enriching with the implementation of NOM-035 initiative because, although we already did much of what is stipulated, it helped us to strengthen well-being and professional development programs for the benefit of our people and the Firm, mainly in challenging moments like the ones we are facing. It was also very gratifying to realize in the initial survey, that the programs implemented in the past, such as bAgile, Family Leave, the Mentoring Program, the Ethics Committee etc., are related to the level of satisfaction and engagement of our people with respect to the work environment and work-life balance. This fills us with enthusiasm and motivation to continue with our commitment to have a better workplace every day for each of the members of the Firm." Gabriela Gómez, HR Director a. Data to emphasize on the composition of our work team Among the metrics generated during this period, we can highlight the following numbers: . Of the total new hires to the Firm, 64% were women and 36% were men. In terms of career development, the total number of people promoted was 54% women and 46% men Additionally, during the period covered by this Report, 84% of our collaborators received an increase in their compensation. Some of the initiatives and programs we implemented during this period were: b. Diversity and Inclusion, New Perspectives Event In February 2020, we organized the Diversity and Inclusion, New Perspectives event as part of our commitment to diversity and inclusion. More than 100 people participated and the Firm's clients, as well as other stakeholders, attended. This time together allowed us to address the issue of new trends, related to diversity and inclusion, with a cross-cutting and strategic approach to business; thus, this initiative added to the positive effect we seek to generate within our community and talent.#19Sustainability report 2019-2020 Mexico | 19 The group of presenters consisted of Anna Brown (Global Director of Diversity and Inclusion), Raymundo Enríquez (Managing Partner), Miriam Villafaña (Director of Corporate Social Responsibility), Vanessa Rubio (Senator of Mexico), and Valeria Moy (Director of México ¿Cómo vamos?). Finally, Cecilia De la Vega also participated as keynote speaker and expert consultant on inclusion issues. This event concluded with a panel comprised of some of our clients and experts in diversity and inclusion: Fernando Velázquez (Partner at ADIL), Alexandra Vitard (Director of Government Relations and Public Affairs at Nike México), Mónica Sánchez y Madrid (Director of Organizational Development at PepsiCo México), and Xavier Careaga (Legal Director of Litigation and Regulation at Facebook). DIVERSIDAD E INCLUSIÓN, NUEVAS PERSPECTIVAS Baker 202 McKenzle. Anna Brown Chelyay cation Dear D DIVERSIDAD E INCLUSIÓN, NUEVAS PERSPECTIVAS FEBRERO 2020 DIVERSIDAD E INCLUSIÓN, NUE STROPETAS NUEVAS PINAS bio c. bAgile DAgile "Having a flexible work policy gave me the opportunity to accompany my wife to all the doctors' appointments she had when she was pregnant. Also, personally, I think working outside the office allows you not to worry about traffic or having to wake up earlier, causing the day to go by faster and increasing your productivity." Gonzalo Martínez, Communications Coordinator of the Firm We provide access to various schemes that allow work to be done in an agile and flexible way so that our collaborators can manage their work and personal commitments, while addressing the business' needs. To this end, we designed and launched the bAgile policy, composed by four flexible working arrangements that offer our collaborators the possibility of working remotely, working flexible or reduced hours, and taking extended leaves of absence for family, academic, or personal reasons. Remote Work Flexible Schedule Reduced Hours Extended Leave of Absence This policy helps to strengthen our talent's commitment to the Firm's principles, which, in turn, improves its efficiency and productivity within the Firm. d. Health and Wellness Activities to Promote Health Health Month Our Talent Team organizes this initiative every year in Mexico during March. This includes talks and activities that promote well-being, as well as general health for our collaborators. This period is intended to reinforce the importance of health through the intervention of specialists in the field and group dynamics, which, as a whole, encourage people to improve their quality of life through healthy eating, physical activity, sports, exercise, and visual health, to mention a few examples. Additionally, during the last few years we have sought to raise awareness among our collaborators about the importance of emotional health; therefore, starting in 2019, psychologists and life coaches have been invited to this celebration to enrich us with their contributions on topics related to positive psychology, resilience, emotional intelligence, life-work balance, among other topics of interest.#20• Health and Contingency In light of the challenges posed by the COVID-19 pandemic this year, we kicked off Health Month 2020 with a campaign to prevent the spread of the virus. Thus, information related to proper hygiene standards, timely detection of symptoms, and strategies to reinforce measures to prevent contagion in our offices prevailed. • Communication At the beginning of the quarantine period, we opened informative spaces with the aim of promoting physical and emotional health care to moderate, in turn, the effects that shelter at home entails. Special newsletters and information capsules on a local, regional, and global level were the means by which we were able to achieve this. This informative material included knowledge about applications that help control anxiety, alternatives for exercising at home, recommendations to work efficiently at home, activities to do with children, as well as other topics of interest to our collaborators. The work described involved opening communication channels from our administrative area, where the members of the Firm found the means to express their concerns, ask questions and, in general, keep in touch with the leadership of the organization. Working in a Virtual World As a response to the scenario that COVID-19 has posed for us (remote work), the Firm opened a global intranet space. Working in a Virtual World allowed the sharing of content for continuous learning through courses, webinars, reminders, guides, and suggestions for working efficiently even from afar. Additionally, this platform also facilitated access to resources that serve as emotional support to deal with the difficult moments that the health crisis could cause. • Webinars about wellness in times of pandemic From April onwards, a weekly space was defined to hold talks on family life during quarantine, crisis management, and the transition to the new normal, among other related aspects. Dr. Chloe Carmichael, New York's PhD in Clinical Psychology and a specialist in highly functional people, hosted the sessions. External Assistance Program (EAP) The External Assistance Program began in March 2020. The Firm funds this initiative so that collaborators and their families have access to counseling services related to mental, physical, social, and financial well-being. It should be noted that one of the principles on which this program is based is strict confidentiality. It is free of charge for our collaborators and their families, as well as the possibility of accessing it 24 hours a day, seven days a Sustainability report 2019-2020 Mexico | 20#21week; for the latter, the telephone line, or the respective website, is available. We also reinforced the dissemination of this program through e-mails and a special statement, which coincided with the beginning of the coronavirus contingency in Mexico. accompany them from different areas. The program opens the possibility to hire the most outstanding interns of each generation. Thus, in the last three years, we have hired 15 students, who have joined the different intern groups located in our five offices. f. Mobility Programs Official Mexican Standard NOM-035-STPS The Official Mexican Standard NOM-035-STPS came into force in 2019 and its main objective is to establish the elements that allow the identification, analysis, prevention, and control of psychosocial risk factors that can influence a person's health and professional performance. At the same time, it seeks to encourage workplaces to be favorable to those who work in them. Learn more about this norm here. 40 40 20 20 Summer Program Data 32 28 19 Stephanie Arias Senior Associate Sustainability report 2019-2020 Mexico | 21 Within the Firm in Mexico, we developed and implemented a policy to prevent psychosocial risks and violence in the workplace. As part of this initiative, we applied a diagnostic questionnaire to collaborators; we then communicated the results and developed Corporate Wellness and Professional Development Programs. Finally, we reinforced the actions we already carry out in relation to the communication of safe and efficient mechanisms, which allow us to address practices that are far from our institutional values and principles. e. Summer Intern Program This program began in 2010 with the purpose of offering students the opportunity to explore professional life. Approximately 20 students from Law, Economics, and Accounting collaborate as interns for two months; during this time, mentors and experts 0 FY18 FY19 FY20 Summer Interns •Summer Program (pro bono project) The Summer Internship Program integrated, for the first time, a pro bono project in 2019. In this project, 32 participants had the opportunity to collaborate in advising on various legal issues, which was provided to our clients, AON, and the civil organizations, Medical Impact and Appleseed. The result transcended in these organizations, reached their own beneficiaries and signified a propitious moment to bring Social Responsibility closer to the students, through pro bono legal work. Providing Mobility Programs for our people is part of the Firm's global culture. Each year, a group of people, selected based on their merits, has the opportunity to work for a certain period (from three months to one year) in another office in the world. The latter is chosen based on the identification of opportunities related to networking and business development. This work strategy strengthens the multiculturalism and diversity of the collaborating teams. There are two types of exchanges within this program: • Associate Training Program (ATP) for the Firm's associates International Clerkship for the Firm's junior associates •#22Sustainability report 2019-2020 Mexico | 22 During the period covered by this report, eight people participated in such programs in offices located in Chicago, Dallas, London, Luxembourg, New York, and San Francisco. g. Scholarships to Study Abroad Because we are interested in the professional development of our talent, we offer a scholarship program to carry out Masters and postgraduate studies abroad, which may include local and/or global support and are awarded each year. The corresponding call is opened every year and includes support on a local and global level. h. Cultural Events and Promotion of Quality of Life In addition to the official dates that allow us to take a break from our work, we also carry out activities to commemorate local festivities and encourage interaction between members of our offices. Among the activities carried out during this period, the following stand out: Costume contest (Halloween) 22 Día de la Candelaria Mother's Day Children's Day Father's Day This program allows people with outstanding work experience within the areas (Mentors) and collaborators with diverse profiles within different areas (Mentee) to interact. The relationship described above encourages support among collaborators to achieve goals, as well as to develop personal, professional, and social skills of the mentees. j. Training and Knowledge Management We have a Knowledge Management area that functions as support; made up of lawyers, economists, and other specialists who are in charge of organizing, processing, and distributing the practice groups and industry, as well as the value-added products and services that maximize the Firm's legal business and its quality. The area facilitates access to world-class legal know- how for all members of the Firm. During this period, we proudly awarded three scholarships to committed and talented individuals who pursued graduate studies in New York and California. :♡ OO Día de Muertos کنسا New Year's Event i. Mentorship Program During the period reported in this document, we implemented an initiative focused on developing the full potential of our talent. In this way, the Mentorship Program is designed to involve new hires welcomed to the Firm, as well as people who have been promoted to another position and require specific follow-up. Mexico has provided legal and business content to the jurisdiction over the past two years through the following resources: Harmony: A virtual library integrates content developed by members of the Firm on a global level. We maintain eleven virtual libraries in Mexico (one for each practice group); these add up to more than 300 published materials about the know-how. Insight Plus: This portal offers legal and industrial news designed for the Firm's clients on a global level. On a national level, we publish, on average, five to ten informative weekly alerts, which address judicial, regulatory, and business issues, which are useful for investors and other stakeholders.#23Sustainability report 2019-2020 Mexico | 23 VBrick: The website is a multimedia portal whose content includes training videos and workshops. During the period referred to in this report and on a national level, we have contributed twenty pieces of information that address the current legal panorama in Mexico. Partners and associates from various practice groups and industries have developed this material. Contract Express: Automation of legal instruments is the main function of this platform. In Mexico, we have moved about ten new document models to a digital format. Contract Companion: This platform allows you to edit and make grammatical corrections. It is worth mentioning that we provide four trainings to the members of the Firm in order to use it properly. PdfDoc: a tool that serves to efficiently manage documents produced in PDF format. Regarding the use and exploitation of this resource, we manage two general trainings addressed to the members of the Firm. Pro bono issues that impact the SDG 8 In relation to the impact on the SDGs, another very relevant part of the strategy is the relationship we have with stakeholders, particularly entrepreneurs who have a key role in the economic development of our country. We provide legal advice, specific consulting, as well as training for entrepreneurs and social enterprises, which, according to the Pro Bono Mexico Standards, "establish new ways to promote the sustainability, regeneration, and economic development of the country". The purpose of this work is to contribute to the regularization of their operations and to advise them on the legal framework that supports their good development. To this end, we collaborate with accelerators and project incubators, of which we highlight: MassChallenge Mexico • Endeavor • Reto Zapopan •Proyecto Ashoka • Proyecto VIVE With this, we registered more than 250 attendees to the different courses given in this area. 10 REDUCED INEQUALITIES SDG 10: REDUCED INEQUALITIES Diversity is fundamental to our identity as a Firm, so we celebrate differences and seek to provide access to development opportunities for our talent. At the same time, we are interested in linking up with stakeholders through strategies aimed at reducing inequalities in a broad sense. a. Disability Inclusion Program During the period covered by this report, we designed a program that favors labor inclusion of people with disabilities. The purpose is to strengthen the culture of respect, equality, integration, and human development within the Firm in Mexico. This objective is closely related to the need to generate spaces to respect the diversity of talent and promote safe workplaces. In accordance with these interests, we will implement this project from July 2020 and will include an awareness campaign, collaboration with experts in the field, as well as partnerships with organizations that encourage the inclusion of people with disabilities.#24Sustainability report 2019-2020 Mexico | 24 b. LGBT Inclusion+ "Thanks to the participation of everyone in the Firm, our LGBT+ inclusion program has become stronger over time, learning and sharing best practices with other organizations, updating our policies and challenging ourselves every day to be more diverse and inclusive fills me with satisfaction and pride". Lorena Gaitán, Corporate Social Responsibility Manager of the Firm At Baker McKenzie Mexico We Are Not Neutral. It is clear to us that diversity strengthens us as an organization. In this way, we openly declare our respect and support for the LGBT+ community. Consequently, we promote a culture of respect by creating inclusive workspaces for all our talent. Policies To guide the actions we implement, we have global policies that reaffirm our position of inclusion and respect for the LGBT+ community; to this end, we are particularly concerned with avoiding discriminatory behavior towards anyone because of their sexual orientation or gender identity/expression. One of the changes we made during the period covered by this report was to strengthen our conviction of inclusiveness through a new family policy. Now, it also considers families that carry out some process of adoption, without leaving aside the benefits related to the arrangements that our collaborators have for paid leaves due to parenthood. Baker Pride + Allies Baker Pride+Allies Internally, during this time, we launched the first business resource group for members of the LGBT+ community and allies. Currently, we have more than 50 members in the five offices, who work to encourage activities that promote spaces for reflection and awareness of the respective topic. Awareness Activities Raising our collaborators' awareness on LGBT+ inclusion is relevant part of our position. In line with this, we organized different activities to commemorate the dates that have represented the LGBT+ movement on a global level. • Webinars and Training Sessions On Pride Month, we held a webinar with Cecilia De la Vega to talk about LGBT+ inclusion in the workplace, the general concepts related to it and the importance of the role of allies. Additionally, we participated in the activities that the Firm carried out on a regional level. These activities included webinars, roundtable sessions, panels, and documentary screenings. The content, in all cases, aimed to raise our talent's awareness about what we are doing in terms of inclusion and the challenges this poses for us. Commemorative Dates We have developed activities during Spirit Day, for which we invite collaborators to wear the color purple on their clothing as a sign of solidarity with LGBT+ youth, who are recurrent targets of harassment and violence due to their sexual orientation. We also organized dynamics during the International Day against Homophobia, Biphobia, and Transphobia (IDAHOBIT), with the purpose of positively reinforcing such concepts through reflection. #Spirit Day #Spirit Day 18 de octubre 2018 #Spirit Day 18 de octubre 2018#25Sustainability report 2019-2020 Mexico | 25 Inclusion Respeto NO som neutrales WE ARE NOT REAL Estoy en contra de la homofobia bifobia y troba Inclusión Respeto WE ARE NOT NEUTRAL Respeto Pride Connection Mexico Spirit Day We have been a part of the Pride WE are NOT neutral 401 WE ARE My siesta arguiles NO somos de ser neutrales MCKENZIE Jolerancia Pride Connection Mexico network since 2018. This Connection™* network is made up of a group of companies and organizations, with whom we share practices that foster an inclusive work culture towards the LGBT+ community. Throughout the year, we have participated in the monthly meetings and sponsored their special events, such as the Summit; this seeks to bring LGBT+ youth together through talks and activities that revolve around issues of labor inclusion, community vision, as well as social links. Additionally, in 2019 we sponsored the event held for the leaders of the organizations that are part of the network. Pride March In June 2019, we participated in the LGBT Pride March+, organized in Mexico City, as contingent members of Pride Connection and together with 50 other organizations. By doing so, we demonstrated our support for the LGBT+ community. Likewise, the Firm had the participation of approximately 50 people, who marched for equality and inclusion with the conviction that being inclusive and diverse makes us stronger. #WeAreNotNeutral Ackenzie Bakpe McKenzie #WeAreNotNeutral In 2020, due to the COVID-19 pandemic, the march was not carried out in person; however, we participated in the virtual activities organized by Pride Connection. Equidad MX The actions we carried out during the period referred to in this document led us HUMAN RIGHTS LAMPAIGN FELSACTION • EQUIDAD MX MEJORES LUGARES PARA TRABAJAR 2020 to receive, for the second consecutive year, the highest rating in the certification granted annually by the Human Rights Campaign Foundation (HRC). This event has allowed us to position ourselves as one of the best places to work for equality for the LGBT+ community. The certification evaluates the policies, practices, and activities that companies establish within their operations around the inclusion of LGBT+ talent. It is worth noting we have achieved this twice in a row. c. Pro bono issues that impact the SDG 10 We are committed to working closely with our communities and supporting the most vulnerable groups in society. To this end, our lawyers provide advice to organizations working for different causes to reduce the inequalities to which people are exposed. The work carried out as part of the commitment described includes the following initiatives: • Global Research Project Legal Atlas for Street Children The Legal Atlas builds on the legal framework that protects street children and youth globally; it includes best practices and recommendations for this population group. This project is carried out together with Consortium for Street Children, the UN Convention on the Rights of the Child and some of our clients such as JPMorgan, Google, Mondelez, and Salesforce. Legal Advice to Various Civil Organizations • Fundación Paso del Norte para la Salud y Bienestar A. C.: It offers support to migrant groups in the north of the country. Ojos que sienten A. C.: It addresses the inclusion of people with visual impairment. • VICDA: It is a volunteer program to care for orphaned children in Africa.#26Environment#277 AFFORDABLE AND CLEAN ENERGY 12 RESPONSIBLE CONSUMPTION AND PRODUCTION QO 13 CLIMATE ACTION We are committed to reducing the carbon footprint generated by our daily operations. We therefore respect and align ourselves with the Ten Principles of the UNGC, particularly those relating to the preservation of the environment, which are set out in the following points. • Principle 7: Businesses should support a precautionary approach to environmental challenges; •Principle 8: undertake initiatives to promote greater environmental responsibility; and • Principle 9: encourage the development and diffusion of environmentally friendly technologies Sustainability report 2019-2020 Mexico | 27#28Sustainability report 2019-2020 Mexico | 28 The global materiality assessment we conducted highlighted four key themes that reinforced the importance of initiatives to reduce the impact on the environment: circular economy, energy, emissions, and climate change. In addition, three of the eight Sustainable Development Goals, prioritized by the Firm, revolve around the environment. Based on the above, our efforts towards the preservation of the environment are coordinated, in Mexico, by the Sustainability Committee (led by Juan Bernardo García, partner of the Firm). B-Green is the global program that carries out the environmental management of the Firm; it began in 2017 with the purpose of integrating sustainability actions to our daily operations. It consists of the following points: . • Measure the carbon footprint with the methodology corresponding to the GHG (Greenhouse Gas) Protocol. Development of Strategies by Modules: Paper Smart, Carbon Smart, Refit Smart, Meeting Smart, Waste Smart, and Travel Smart. In connection with this, each fiscal year we document and report data about the energy, paper, and business travel that is part of our daily lives. This, in order to know the progress we have after implementing internal and external initiatives, which are focused on reducing our impact on the environment. tCO2 Concept FY17 FY18 FY19 FY20 Base line Paper Use (Reams purchased) 14 21.3 14.7 11.7 Energy Consumption (kw/h) 670 629 614 532 a. B-Green Program Daniela Quintanilla Corporate Social Responsibility Coordinator Carbon Footprint The methodology of the GHG Protocol divides CO2 emissions into three scopes: . Scope 1: Direct emissions (sources owned or controlled by the reporting entity) • Scopes 2 and 3: Indirect emissions (derived from our business activities, but occurring at sources that are controlled by another entity) As a professional services Firm, we are specifically interested in scope 2 (it comes from purchased electricity consumption) and scope 3 (it comes from paper and other waste, as well as business traveling). TOTAL Emissions from Business Travel 1,200 1,209 702 363 (km traveled) 1,884 1,859 1,331 906 Variation Against Previous Year -1% -28% -32%#29Sustainability report 2019-2020 Mexico | 29 The table above shows that, due to the circumstances brought about by the COVID-19 pandemic, there has been a significant decrease in the carbon footprint. Since most of the collaborators were working from home, the use of supplies (such as paper and energy in the offices) decreased. In the same way, business travel also stopped, which favored this decrease. However, when operating under the new normal, these numbers tend to increase. Despite this, the scenario resulting from the health crisis has allowed us to identify areas of opportunity within our business practices. Thanks to that, we are aware of the modifications that can lead us to a permanent transformation. Strategies by Modules In another sense, the program contemplates modules that include proposals of activities that can be implemented in each office in order to reduce the carbon footprint. The Paper and Carbon modules were launched in the first year; Waste, Meeting, and Travel, in the second. To monitor progress, the program includes a star-based rating calculated from self-questionnaires. Maturity in environmental management 4-Star Offices Demonstrate best practices, leadership and constant progress. 3-Star Offices Plan and manage environmental performance, set goals, and create action plans. 2-Star Offices Measure impact and define baseline. 1-Star Offices Show awareness through a Green Team that leads environmental initiatives.#30The performance for the offices in Mexico is shown below: Office - MEXICO Guadalajara MEXICO - Juarez MEXICO Mexico City MEXICO Monterrey MEXICO Tijuana - FY18 Star Rating FY19 Star Rating FY20 Star Rating 7 AFFORDABLE AND CLEAN ENERGY Sustainability report 2019-2020 Mexico | 30 For the next year, our goal is to achieve four stars (the highest score). b. Global Goals to Reduce Emissions The plan to significantly reduce our carbon emissions over the next decade was implemented in 2019 globally. The objectives defined in this plan are: • To reduce 92% of our global energy consumption by 2030 (from a baseline of 2019) . . To develop a strategy and objective for 2021 that will help us reduce emissions from commercial air travel To report our emissions to the Carbon Disclosure Project from 2020 Learn more about these goals here. SDG 7: AFFORDABLE AND CLEAN ENERGY The use of renewable energy is an extremely relevant factor in reducing emissions; therefore, on a global level, we consider the acquisition of renewable energy credits as part of the actions that will allow us to reduce energy consumption by 92% by 2030. In Mexico, we joined this goal through B-Green, the environmental management program and through our practice groups that address climate, environmental, and energy issues.#31a. Our Performance Since FY17 we have carried out initiatives, such as the reduction of office space, that have contributed to reducing energy consumption over the last three years. Similarly, we have implemented some flexible work policies, used electronic equipment with energy efficiency certifications, and carried out other initiatives in line with this objective. FY17 FY18 FY19 FY20 12 RESPONSIBLE CONSUMPTION AND PRODUCTION QO SDG 12: RESPONSIBLE CONSUMPTION AND PRODUCTION B-Green, allows us to improve the way we consume, obtain, treat, and dispose of resources through the Paper and Waste Smart modules. Paper Consumption Sustainability report 2019-2020 Mexico | 31 kg FY17 FY19 FY20 21,522 14,061 11,262 Variation Against previous Year -31% -20% Energy Consumption (tCO2) Variation Against Previous Year 670 629 614 532 a. Paper Smart -6% -2% -13% b. Plan to Reduce Energy Consumption Reducing 92% of our energy consumption by 2030 means taking a number of actions such as: • Organizing internal awareness campaigns . • Reconditioning our facilities for greater energy efficiency Reducing office use Expanding our bAgile flexible work policy, which considers remote work This module seeks to manage the use of paper, thereby reducing its consumption and increasing recycling. Thanks to this module, we were able to evaluate our practices regarding the use of paper and identify gaps and opportunities to reduce it. "The sum of individual's contributions to the environment's improvement will generate the change that our planet requires. The efforts to reduce the use of paper and printing have paid off in our Firm; thanks to all those who, in a conscious and affirming way, have changed their habits and customs to achieve this goal; there is much to be done, but we are moving in the right direction". Juan Manuel Fernández, Baker McKenzie COO Printings FY18 FY19 FY20 4,827,704 3,854,178 2,673,085 Variation Against previous Year -20% -31% It is important to mention that, during the last three months of FY20, offices remained closed or with reduced traffic; this caused a considerable reduction in printings. Campaigns to Reduce Paper Use During FY19 and FY20 we continued our efforts to reduce paper consumption, which are outlined below: • Second Phase of the campaign to manage and reduce printing: This consisted of competing to achieve maximum reduction of printings between offices. The winner was Guadalajara, where they achieved a 56% decrease. Prize awarded to each collaborator of the Guadalajara office#32Sustainability report 2019-2020 Mexico | 32 Double Monitor Installation: Carried out through the IT Area to encourage content reviews in electronic media and thus reduce the amount of printings.. Document Mapping: Implemented to identify printings that are potential material to be transferred to an electronic format. This effort required consultation with the administrative areas, which allowed us to find an opportunity to reduce 13,310 sheets per month. General Initiatives During FY19 and FY20 we took actions to improve the way we treat our waste: • Use of Sustainable Materials: We replaced disposable single-use items (such as plates and cutlery) with ceramic tableware. We placed glass cups and mugs in the meeting rooms of all offices to reduce the use of PET. •Recycling: We have programs to recycle paper, plastic caps, batteries, can rings, and electronic materials within the five offices. This effort involves the areas of CSR, IT, and Operations. As part of this last point, the Finance Area launched a new system to manage digital payments; this initiative allowed to reduce about 11,090 printings each month. Tapatón Baker McKenzie. Waste Management Program One of the objectives of FY20, in terms of waste, was to implement a program to manage the waste generated within the offices; although it would be executed in April 2020, the contingency derived from COVID-19 led us to postpone this program until we returned to the offices. The pandemic has brought about a number of changes in the way we operate, so it is essential for us to adapt to an emerging normality. Consequently, we will again analyze the plan for managing waste; we will rethink it to make it efficient and consistent with the current reality. Waste Smart The Waste Smart module aims to set up a process to manage waste; in the same way, it aims to provide guidance on the implementation and involvement of partners in such a system. nz#3313 CLIMATE ACTION Sustainability report 2019-2020 Mexico | 33 Our objective, set for the next few years, is to expand the number of events and initiatives that will allow us to make more neutralizations. See certificates here. Year Earth Day Theme Documentary Attendees 2018 2019 Earth Day Pollution caused by plastic Protection of our species A Plastic Ocean 90 Virunga 100 2020 Climate action Before the Flood 40 SDG 13: CLIMATE ACTION Climate change is one of today's most pressing issues. Urgent action is needed to help reduce CO2 emissions. At Baker McKenzie, we are aware of our responsibility with respect to this problem, therefore, we carry out actions that allow us to reduce the environmental impact caused by our operations. "Using the Earth Day to raise awareness among the Baker McKenzie community that our daily actions really do have an impact on the balance of the planet's ecosystems, allowing us to encourage institutional responsibility to avoid those that damage them, is a great satisfaction." Marco Nieto, Partner of the Firm a. Carbon Smart Mexico City 2018 This module proposes effective processes to manage carbon; its intention is to reduce the environmental impact of our business activities. Carbon Offsets Since 2017, in collaboration with MEXICO2 (the environmental markets platform of the Mexican Stock Exchange), we have been neutralizing the CO2 emissions caused by our internal and external events. During this period, we have offset 24,707 tons of CO2, by acquiring carbon offsets from the Fresh Breeze project (a forestry project implemented in Chiapas, Nayarit, and Tabasco). Learn more about this project here. Baker McKenzie celebrates Earth Day on a global level; this commemoration is organized since 2018 and has the purpose of generating awareness, among collaborators about the importance of including actions to reduce the environmental impact. In Mexico, we joined this global effort from the beginning. To this end, we screened a documentary on the environment in each of our offices. In 2020, due to the COVID-19 pandemic, we extended the invitation to our collaborators to watch the documentary at home. Afterwards, we organized a virtual session to exchange comments and experiences. Monterrey 2018#34Sustainability report 2019-2020 Mexico | 34 World Environment Day We also celebrate World Environment Day. The celebration in 2019 consisted of an internal communication campaign on the theme "Air Pollution". Additionally, it provided the space for dialogue on the Zero Waste movement; Carlos Viesca, who is part of the consultancy Rinters (specialized in sustainability issues), led this talk. The celebration of 2020 took place digitally, so we sent out a statement to remind people of the importance of this day and to offer recommendations regarding the care of our environment. b. Meeting Smart As a legal services Firm, meetings are a fundamental aspect of our work culture; they are especially important in maintaining the relationship with our clients and other stakeholders. Nonetheless, we are aware of the environmental impact they entail and therefore take steps to reduce the repercussions. This module seeks to incorporate environmental sustainability into the planning of the events that we carry out as a Firm. For this reason, we have developed a guide for suppliers that will be published in FY21. This reference material includes the guidelines that must be followed to participate in a Firm event. The next step will be to set out general guidelines specifying the characteristics and considerations to be met when organizing an event. This guide will be directed to the areas and persons belonging to the Firm that usually organize both internal and external events. It will also include topics related to food, waste, energy, transportation, headquarters, materials, among others that are relevant. c. Travel Smart Aviation is one of the most polluting industries. Despite this, the professional services we offer require us to carry out recurrent business trips by plane; these are an integral and unavoidable aspect of carrying out our operations. Business air travel is our main source of emissions, so we will avoid making non-essential trips and continue to invest in the technology that allows us to hold good quality video conferences. Additionally, we will redesign meetings and events to make virtual attendance more frequent. The following table shows the carbon footprint of business travel. FY17 FY18 FY19 FY20 tCO2 1,200 1,209 702 363 Variation Against Previous Year 1% -42% -48% The pandemic that has occurred during 2020 has required us to carefully evaluate the travel we have undertaken in past years; through this task, we hope to accurately determine the travel that is considered essential and necessary for the operation of the business. d. Pro Bono: Environmental Consultancy Through pro bono legal advice, we collaborated with entrepreneurs whose business model is related to products or services that have a positive impact on the environment. SARAR Transformación, Futz, Golgi Technology, Polybion, and Lup Colombia exemplify some of these collaborations. In addition to the above, we also gave a talk on Environmental Law as part of our partnership with Appleseed for Grupo Mexico's CSOs.#35Economic and Governance#3616 PEACE, JUSTICE AND STRONG INSTITUTIONS 17 PARTNERSHIPS FOR THE GOALS Bárbara Marcen Compliance Director Being a strong and fair organization requires good governance. We are committed to consolidating ourselves as a Firm that guarantees responsibility and integrity in its business model. Our Compliance Plan serves as a means to promote transparency, accountability, and ethics in every interaction we have with our stakeholders. This section covers programs and activities that contribute to Principle 10 of the UN Global Compact. . Principle 10. Businesses should work against corruption in all its forms, including extortion and bribery Sustainability report 2019-2020 Mexico | 36#37Sustainability report 2019-2020 Mexico | 37 a. Code of Conduct and Guiding Principles Our Code of Conduct (see here) sets out the behavior we expect from our employees in relation to issues such as compliance with anti-corruption laws, dealing with sanctions, money laundering prevention, and avoiding conflicts of interest, among other topics. As a complement to this material, we also developed 10 Guiding Principles, which serve as references for decision-making and present the behavior expected from the members of the Firm. a. Compliance Plan This plan ensures the implementation of programs and initiatives that aim to fully comply with internal and external regulations. At the same time, it allows us to keep up with global trends. In FY19, we added two new pillars to the plan: continuous improvement and optimization. Baker McKenzie. • • • Money Laundering Prevention (Know your client) Professional Liability Consultations (Baker McKenzie as a supplier) ⚫ Suppliers • Anti-corruption • Data Privacy Local Ethics Committee 16 PEACE, JUSTICE AND STRONG INSTITUTIONS ANÁLISIS DE RIESGO Liderazgo COMPLIANCE en Baker McKenzie México PLAN DE COMPLIANCE: LOS 9 PILARES |☑€ Riezgo Politicas Controles Comunicación Entrenamientos Monitoreo Mejora Optimización Continua 00000 Programas de Mitigación de Riesgo (Comité de Riesgo) Asuntos Legales Programas de Cultura Compliance • Anticorrupción Baker McKenzie como Proveedor Conoce a tu Proveedor ⚫ Goberbernanza Corporativa Catálogo de Politicas Internas Embajadores Protocolos de Riesgo Prevención de Lavado de Dinero • Privacidad de Datos . Responsibilidad Profesional " Retención de Registros Comité de Ética Local - Ethics Hotline [email protected] Tel: 001-844-493-5219 Consultas Compliance consultascompliance.mexico @bakermckenzie.com PROCESO DE CERTIFICACIÓN El Código de Conducta de Negocios de Baker McKenzie está pensado para ayudar a todos los integrantes de Baker McKenzie a cumplir con todas las leyes, reglas y regulaciones aplicables, así como con las politicas y estándares de la Firma. El Attorney Manual Guide expone las politicas y prácticas de la Firma con respecto a una amplia gama de cuestiones profesionales, áreas de prácticas y asuntos éticos. SDG 16: PEACE, JUSTICE, AND STRONG INSTITUTIONS Nuestra reputación es el activo más valioso que tenemos y cada uno de nosotros tiene el deber de preservaria, tomando las decisiones correctas y haciendo las cosas correctas. We make the right decisions and do the right thing, in accordance with the law and our Code of Conduct. This second point raises high legal, ethical, and professional standards. Thus, through our Compliance Plan, we strengthen the business model through schemes that promote transparency, accountability, as well as risk identification and mitigation. b. Integral Committee The committee ensures compliance with this plan and is made up of people working on compliance issues globally. It currently has 24 members. The main topics, listed in the following points, are divided among themselves to be addressed with attention. c. Programs to Mitigate Risks These programs were created in FY18; they aim to address issues that represent some vulnerability for the Firm, according to the nature of the business. At present, the following topics are being addressed. Money Laundering Prevention (Know your client) We are committed to complying with all laws against money laundering and we respect measures to combat terrorism in a timely manner. Therefore, we only do business with clients who are backed by a good reputation, thanks to their legitimate business activities and funds derived from reliable sources. This issue promotes the creation of policies, manuals, guidelines, and directives; in the same sense, it includes a program for monitoring vulnerable activities, as well as the creation and alignment with the Risk Committee to Prevent Money Laundering.#38Sustainability report 2019-2020 Mexico | 38 Anti-corruption We have an obligation to comply with laws against bribery and corruption, which guide our interaction with governments and public officials and govern our dealings with clients, suppliers, and our stakeholders. We are committed to advising our clients and partners on this issue. To this end, we have a global policy that allows us to address this aspect within the Firm and ensure compliance with such laws. Professional Responsibility We are responsible for what we do and what we do not do, as well as for the quality of our advice and service. Integrity guides our decisions and actions. With regard to these principles, we created the document "Compliance Professional Responsibility" to address the proper implementation of the Comprehensive Client Service Program. Privacy We have access to our clients and other stakeholders' confidential information; therefore, we know that our relationship with each of them is based on trust. Therefore, we comply with applicable laws and commit to the responsible handling of personal information, which includes, among other things, information about the identity or location of individuals. Additionally, we developed guidelines for collaborators, suppliers, and clients; we also have the corresponding Privacy Notices. This is in accordance with the guidelines of the Global Data Privacy Committee, Know Your Supplier - Knowing Our Suppliers and is intended to ensure that our suppliers, within our scope, behave in an ethical and responsible manner. Thus, Know Your Supplier allows the acquisition, through a standardized process, of products or services in which suppliers are requested to commit to policies and guidelines that promote integrity, as well as the legality of their operations. This process requires them, in turn, to provide documentation that supports them as ethical and fit-for-service providers. d. Launch of the Compliance Initiative The event “Compliance, Disruptive Trends" took place in October 2019 and allowed us to present the compliance strategy to our stakeholders (clients, chambers, and collaborators). METODO 10-5-10 Baker McKenzie • Subsequently, we continued to promote the issue among our stakeholders through the following initiatives: • • February 6th, 2020: Breakfast "Law of Domain Extension and Vulnerable Activities". April 23rd, 2020: Webinar "Do's & Don'ts in Compliance with Regulations in Times of COVID-19". June 10th, 2020: Webinar "Compliance with Measures for Incorporation into the New Normal". 17 PARTNERSHIPS FOR THE GOALS SDG 17: PARTNERSHIPS FOR THE GOALS Thanks to the alliances and participations that we have with our stakeholders (especially with like-minded clients and associations); we managed to have better results in the proposed initiatives. Therefore, we have strengthened the relationship with the actors who are key to reaching our objectives. In this way, the implementation of pro bono and community service programs are elements that strengthen our strategy and direct our efforts assertively.#39a. Pro Bono Program Baker McKenz Additionally, we collaborate with the three most recognized clearing-houses in the country (Appleseed, Centro Mexicano Pro Bono, and Fundación Barra Mexicana), which allows us to channel our efforts and focus the support we provide, through legal advice and training. These instances provide us with pro bono cases to assist specific projects for the benefit of civil society organizations, vulnerable groups, and social enterprises. The aforementioned clearing-houses provide us with relevant information, based on evaluations and validations previously carried out by them and other administrations. María del Rosario Lombera, partner of the Firm, participates in the Board of Directors of Appleseed and the Mexican Pro Bono Center. Metrics: Sustainability report 2019-2020 Mexico | 39 FY18 FY19 FY20 Hours 1,063 1,657 2,251 Participants Projects 95 92 120 24 51 70 Our mission is to provide free, high-quality legal services to the people in most need through associations and institutions that have support programs and encourage a culture of public service. Since 2009, we have the Pro Bono Committee that coordinates and supervises all the activities we carry out in relation to pro bono legal work. Likewise, the Committee establishes relations with other offices, external organizations and international associations with the purpose to share best practices, join regional movements, and bring pro bono work closer to different stakeholders. Currently, the Committee is led by María del Rosario Lombera, partner of the Firm. "The Firm's Pro Bono Program is one of the first steps we took more than ten years ago towards the concept of Corporate Social Responsibility in Mexico. Being part of national and international movements and standards to regulate pro bono legal work has allowed us to better channel our efforts and focus support for the common good and the strengthening of the rule of law in our country." Maria del Rosario Lombera, Partner Pro Bono Committee Leader Pro Bono Work Policy During the period covered by this report, we updated the Guidelines for Pro Bono Work in Mexico; thus, we have established a new aspirational target of hours. Each fee earner aims to add up to 40 hours of pro bono work each year. These hours are part of their annual productivity goal. The hours invested in pro bono work during FY19 and FY20 represented $1,017,323, due to the time provided by our attorneys for different matters, as well as for training.#40"Working on pro bono matters reflects the true spirit of service, which is a fundamental pillar of the legal profession, and which, in some cases, is fading over time.... I am excited to be part of these projects that contribute to building a better society, and I am proud of our progress as a Firm in this regard". Camila Rivera, Firm Intern "It was a pleasure to participate in Appleseed's project to support Fundación Paso del Norte para la Salud y Bienestar A.C. in fulfilling its obligations under the Money Laundering Law. I believe it is very relevant that civil organizations receive support with legal issues so that they can fully dedicate themselves to the management and operation of the foundation." Esthefany Rojas, Associate of the Firm "Working on pro bono projects is very rewarding, since it allows us to support people who really need help in specific matters and cannot afford such advice. In these projects, the results are visible almost immediately and we are left with the satisfaction of knowing that we were able to help. In addition, the projects are very interesting, they force us to update ourselves in our legal knowledge, to know the reality of how the law operates. In the end, this program make us better lawyers and better people." Daniel Urdiain, Associate of the Firm Estándares Pro Bono México We are signatories and reviewers of the Estándares Pro Bono México. This is an effort we are making in the interest of establishing the bases, motives, and considerations that will allow us to standardize the concept of pro bono legal work in the country. Our work in this regard is in addition to the activities that this movement carries out together with other organizations. ESTÁNDARES PROBONOmx We are also signatories to the Pro Bono Declaration of the Americas (see here), a mechanism that offers the opportunity to promote pro bono legal work in the Americas. The above-mentioned initiatives show the commitment to put our expertise at the service of vulnerable groups, without forgetting the need to establish links with organizations that will help us expand our reach. b. Community Service Program We want to develop a culture of social responsibility and integrity, not only within the Firm, but with our stakeholders. The communities in which we are immersed are part of these groups. We created a Community Service Program that aims to promote the culture of social and environmental development through activities that involve our people. In this case, collaboration with key stakeholders for the Firm in Mexico (clients, associations, and suppliers, to mention a few examples) is decisive. This program is managed by the Community Service Committee, led by Miriam Villafaña Reguero, Social Responsibility Director of the Firm in Mexico. Sustainability report 2019 2020 Mexico | 40#41Sustainability report 2019-2020 Mexico | 41 Program Objective Social Responsibility Committee/Community Service Committee Community Service Promote a culture of social and environmental development AND STRONG INSTITUTIONS 5 GENDER EQUALITY 7 AFFORDABLE AND CLEAN ENERGY 8 DECENT WORK AND ECONOMIC GROWTH 10 REDUCED INEQUALITIES 12 RESPONSIBLE CONSUMPTION AND PRODUCTION 13 CLIMATE ACTION 16 PEACE, JUSTICE Causes QO PARTNERSHIPS 17 FOR THE GOALS In 2019 and 2020 we organized several collections and donations, which resulted in 279,596 pesos and 2,635 items in kind (toys, medicines, and food), for the following 21 associations: • Bomberos de Ciudad Juárez •Cardio Cavitos Casa Hogar Santa María • Comedor Comunitario CAMSVI • Comedor Nuestra Señora de la Esperanza • Comer y Crecer A. C. Con la Vista en Ti • Dibujando un Mañana Dios con nosotros A.C. Stakeholders Our People Clients NGO's Community • Enrique Yturria García, A. B. P. Enablers Donations Donations The donations we make are one of the enablers of the program. We make such contributions through the Community Service Committee or through collections made with collaborators. Communication • Fundación Esperanza para Niños con Diabetes México A. C. Fundación Fimbres A. C. • Fundación Pro Niños de la Calle A. C. • Hogar de Niños Emmanuel A. C. Volunteering • Hospital Infantil de México Federico Gómez Los Ojos de Dios • Orfanatorio Guadalupe de Ciudad Juárez • Quiero Ayudar a los Niños de Juárez y Hacer la Diferencia Quinta Carmelita I. A. P. • Sometimes, they respond to the matching funds scheme (for each peso contributed by the members of the Firm, the Firm contributes an equal amount). Soñar Despierto • Vino, Trigo y Aceite A. C. • Colecta Fondo Unido#42AVENA FAVORE NO PASAR AVENA Sustainability report 2019-2020 Mexico | 42 WIT In 2020, we led a fundraising drive in collaboration with Fondo Unido-United Way. This initiative arose in connection with the COVID-19 contingency; the purpose was to support the organization's Emergency Fund. The fundraising was addressed to our collaborators. At the end, we collect 175,951.44 pesos. We allocate the resource to the attention of the COVID-19 regarding food and nutrition. Thus, we delivered 164 grocery items to families of Xochimilco and Coyoacán, communities located in Mexico City. The beneficiaries were people who are in a vulnerable situation, due to the fact that they lost their jobs during the health crisis and with it, their purchasing power of the basic family grocery items. "If the pandemic has taught us something very positive, it is to live with less and share more, because in order to be well individually, we have to be well collectively. In that sense, by helping others we fulfill our social commitment, we contribute to the achievement of a common good and, in addition, we help each other to be better people." Gaspar Gutiérrez, Partner of the Firm • • RelateXJalisco Donation We joined the project of one of our most important clients. We contributed resources to buy stuffed animals that were given as gifts to children from various associations on Children's Day. The stuffed animals were given to the assistants of the Atlas vs. Chivas soccer match, which took place on March 7th, 2020, to be thrown from the stands onto the field during halftime. We are especially grateful for the support given by our partners, Reynaldo Vizcarra and Fabián Monsalve in this initiative. Volunteering The second enabler of the Community Service Program is volunteer activities. We participate in five volunteer programs on a national level during 2019 and 2020. • NAC&S Community Service Day 2019 For the second consecutive year, the Corporate and Securities Practice Group participated in the regional initiative North America Corporate and Securities Community Service Day which seeks that the collaborators of this group dedicate one day of the month of June to carry out some community service activity. The Monterrey and Mexico City offices joined this action, led by Aidé Banda and Jesús Pérez Palazuelos respectively. Monterrey: We cooked and served 250 meals to help the beneficiaries of the CAMSVI (Comunidad Apostólica María Siempre Virgen) Community Dining Hall. 127#43Mexico City: We spent time with children and adolescents who are part of Fundación Pro Niños de la Calle I. A. P. and those who will participate in the project La Cima de tu vida, described below. los niños no son de la Calle, son n Athziri Soto Associate Sustainability report 2019-2020 Mexico | 43 Mónica García Specialist • Photo Marathon for Cruz Rosa "Un Día Rosa" consisted of buying T-shirts with an awareness message about the fight against cancer in women and a photo session in order to join the global network that promotes the fight against this disease. This activity involved 50 volunteers from our Monterrey office. In addition, with the donation to obtain the T-shirts, we contributed resources to Asociación Cruz Rosa, the association organizing the event that supports women with cancer and their families. believe Cada The context created by the health contingency of COVID-19 provided us with the opportunity to implement online volunteering in such a way that our Community Service Program was not disrupted. To do this, we work closely with the association Voluntarios México, made up of experts in corporate volunteering with companies and organizations. For one month, 42 volunteers supported five associations through online activities. These activities consisted of generating content for social networks, producing communication, and training materials, creating corporate presentations, translating, providing training, and writing articles for the beneficiaries, to mention a few examples. The associations supported are: • Descubrieron al Ser a Través del Conocimiento A. C. • La Cima de tu Vida This educational program seeks to develop positive behaviors among young people living on the streets and thus transform their living conditions. We joined this purpose through donations and volunteer actions. In total, we participated in two outings that consisted of walking and climbing with 40 children and young people from Fundación Pro Niños. believe H • Fomento Educativo Intercultural A. C. • Fundación AVU • Juntos por la Niñez, Mi Casita A. C. • Virtual Volunteering "Shortening distances" • Resiliencia Social y Comunitaria A. C.#44Metrics of Volunteer Actions The overall program involved 103 volunteers during the years 2019 and 2020; this implied 568 hours invested and translated, in turn, into 71 working days. Histórico FY18 FY19 FY20 Horas 1,984 1,416* 84 484 Días 248 177 10.5 60.5 Voluntarios 156 53 21 82 c. Alliances and Participation with Clients We feel a deep gratitude to our clients, with whom we collaborate in some initiatives and activities to join efforts, share practices and deepen our vision of Social Responsibility through different objectives. We would especially like to thank those clients who we invited to collaborate with us in CSR actions during this period: • AON • Facebook • Group Orlegi • Nike • JPMorgan • Pepsico d. Alliances and Participation with Organizations Organizations must be involved in the solutions that today's global challenges demand. To this end, we are proud to collaborate with chambers, associations, and civil society organizations, through which we enhance the impact of our activities. During the period referred to in this document, we collaborated with 145 organizations, associations, and chambers. This meant joining forces and walking together towards the same objective. The following list sets out our ten closest collaborations: *Various support activities were carried out in the context of the 2017 earthquakes, which increases the number of hours spent. • Abogadas MX • Appleseed •Centro Mexicano Pro Bono Fondo Unido-United Way •Fundación Barra Mexicana • Endeavor . MassChallenge • Pride Connection Mexico Global Compact Local Network . Red Wo-Men-In Sustainability report 2019-2020 Mexico | 44#45Awards and Recognitions#46We are recognized by the high level of specialization of our professionals and for our management in different areas. Such qualities have earned us awards and distinctions obtained locally. We mention some of them in the following points: • We obtained the Empresa Socialmente Responsable distinction by Centro Mexicano para la Filantropía for two consecutive years (2019 and 2020). • We received a perfect score in the Equidad MX index (in both. 2019 and 2020), which was determined by the Human Rights Campaign; we were considered one of the Best Places to Work for LGBT Equality. For the second year in a row, in 2019 the Vance Center and Latin Lawyer considered us as a Leading Light due to the pro bono work we did. • Chambers Global recognized us, within its annual ranking, in 16 Practice Groups and 34 lawyers. . • •Legal 500 Latam recognized us, within its annual ranking, in 13 practices and 23 lawyers. We appear in the Expansion Ranking during 2019, for the second time, as one of the 100 Responsible Companies in Mexico. ⚫The IFLR (International Financial Law Review) highlighted us in three practices and three lawyers. Check out the awards and distinctions the Firm obtained globally here. Sustainability report 2019-2020 Mexico | 46#47COVID-19#48Sustainability report 2019-2020 Mexico | 48 During 2020, the global context radically changed the landscape of ways of living and being together. The pandemic caused by COVID-19 generated changes on economic, political, and social levels and impacted the way organizations operate. For us, the pandemic has meant facing challenges on different levels. However, it has also given us opportunities to implement initiatives and programs to support our community. We worked on various initiatives within the Firm: • Creation of the Risk and Safety Committee The Risk and Safety Committee was strengthened and, from the beginning of the quarantine, implemented periodic meetings to anticipate necessary adjustments, as well as to resolve issues arising from the national situation. The actions that this commission carried out were in line with the guidelines of the regional committee, created for this purpose. Town Halls On a regional level (Mexico, United States, and Canada), we meet weekly to stay informed about decisions that impact people, the operation, the ways in which we relate to our clients and other stakeholders, adaptation to new regulations, as well as the interaction that work teams have. Specifically, in Mexico, we hold monthly town halls in order to address the national context. Remote Work In Mexico, based on the official provisions to assume the measures that a quarantine period implies, we made the necessary adjustments so that our collaborators could continue • their work remotely during the agreed time. This allowed us to support our talent on a personal and family level, as well as to continue with our operations and the service we provide to our clients. External Assistance Program During quarantine, our talent area implemented the External Assistance Program. The purpose was to preserve, through external means, the mental, physical, social, and financial well-being of our collaborators, as well as their families. This program was governed by a strict principle of confidentiality. • Building our Future Project In order to face the challenges presented by the new normal, a team composed of some of the Firm's leaders was formed. The purpose of this project was to develop action plans that address key aspects of facing internal and external challenges in the face of the "new normal". Externally, we collaborated on projects to positively impact some of the most vulnerable groups during this situation, through the activities listed below.#49• COVID-19 Legal Guide for CSOs As part of our efforts on pro bono work, we participated in the development of a legal guide to provide information to civil society organizations. This guide addresses the main legal issues arising from the national context, official regulations, and adjustments made during the pandemic. • Online Corporate Volunteering We worked closely with the association Voluntarios México, made up of experts in corporate volunteering with companies and organizations. Thus, 42 volunteers conducted online working sessions to support five civil society organizations through various activities. Fondo Unido - United Way Fundraising We made an internal fundraiser with our collaborators in order to support the emergency fund of Fondo Unido por el COVID19. Sustainability report 2019-2020 Mexico | 49#50Closing#51The programs and initiatives presented in this report reflect the ongoing work of each area of the Firm. At the same time, they serve as evidence of our interest in making a positive impact on our communities, in accordance with our global vision, SDGs, and CSR strategy. We are pleased to be a pioneer in the sector and to continue to inform our stakeholders periodically about the actions implemented in terms of CSR. During the years 2019 and 2020, we developed new activities, followed up on previously established programs and strengthened our culture of responsibility and integrity. We greatly appreciate the participation of each of our stakeholders. We would especially like to recognize our clients who have joined forces and collaborated with us over the past two years; our collaborators who have shown at solid and constant commitment to our causes; and all those who, together, have made it possible to obtain the results presented in this report. We are proud of the road we have traveled and are ready to face the challenges that the future will bring. Sustainability report 2019-2020 Mexico | 51#52Baker McKenzie helps clients overcome the challenges of competing in the global economy. We solve complex legal problems across borders and practice areas. Our unique culture, developed over 70 years, enables our 13,000 people to understand local markets and navigate multiple jurisdictions, working together as trusted colleagues and friends to instil confidence in our clients. Baker & McKenzie International is a global law firm with member law firms around the world. 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