#1کہ کہ → PETSTAR PETSTAR CO NEUTRAL 2 FOOTPRINT NEUTRAL CARBON F Sustainability Report 2020 Marking the beginning of a DECADE of change ARCACONTINENTAL Coca-Cola México Bepensa CRICA NAVAR ECO Corpor#22 Sustainability Report 2020 PETSTAR Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs Contents 04 Welcome letter and message 06 Creating value 08 Who we are? 20 Accelerating actions to achieve the SDGs 24 People Planet 42 60 74 Prosperity Peace 80 Partnerships 89 Appendices Sustainability Report PETSTAR 3 2020 E>#3Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices Letter from our CEO and Message from the Chairman of the PetStar Board of Administration Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs "The strategic vision and our conviction to be part of the solution and improve the social and environmental environment of recycling is what makes us different and even in difficult times allows us to evolve". Alejandro Molina, Chairman of the PetStar Board of Administration Dear stakeholders of PetStar, I am pleased to present our 2020 Sustainability Report entitled "Marking the Beginning of a Decade of Change", which reflects our commitment to the international agenda promoted by the United Nations; as well as the actions we have implemented to remain a benchmark company of excellence worldwide in PET recycling. Our PetStar Sustainable Business Model (PSBM) has been consolidated as a real and tangible circular economy solution alternative that demonstrates the generation of social, environmental, and economic value from recycled food grade resin, PetStar RebornⓇ, making Mexico a global benchmark. The health crisis due to COVID-19 has transformed the world in unimaginable ways, leaving an economic, social and environmental impact that will continue to have an effect in the coming years. We are convinced that to be resilient and build again in a better way, it is necessary to join forces, so we have joined the initiative promoted by the United Nations, "Decade of Action", focused on integrating the Sustainable Development Goals (SDGs) to the business models of companies and accelerate their compliance before the year 2030. We found, during this very challenging year, that by combining our efforts with our collaborators and in conjunction with their endeavors we were able to maintain our operation, adapting to the new normality to guarantee that our shareholders continue to offer sustainable packaging of PET. In this effort to have a better world, we also recognize the importance of thousands of people, women and men who obtain income from the recovery of recoverable waste, and who are a very important link in the recycling chain, for which we will continue working to promote inclusive recycling, social mobility, and the empowerment of this sector. Tappreciate the commitment of our shareholders, part of the Mexican Coca-Cola Industry, who, despite the economic uncertainty of the environment, maintain their commitment and conviction to promote recycling by incorporating our recycled food grade resin in PET containers, building the circular economy of the same, as well as meeting the goals of the global strategy #WorldWithoutWaste, which allows us to transfer the certainty of purchase of the material for the benefit of thousands of waste pickers and collectors in the country. Finally, we reaffirm our commitment to the international principles and standards to which we adhere to such as the Sustainable Development Goals and the Global Compact, the Earth Charter, the Principles for a Sustainable Ocean of the UN Global Compact itself and the Human Rights. Jaime Cámara, CEO of PetStar "Even in the midst of a crisis, with the right approach, this crisis can become an opportunity to move forward, create value and strengthen the sustainable vision of business models". Jaime Cámara, CEO of PetStar Sustainability Report PETSTAR 4 2020 GRI 102-14, 102-15, 102-29, 102-30, 102-31. Sustainability Report 2020 PETSTAR 5 E>#46 Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices Creating value | Who we are? Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs Generating value PetStar in numbers 0 3,440 million bottles recycled per year 86,036 tons of PET collected per year 52,175 tons of recycled food grade PET resin produced 66% of the energy used in our processes comes from renewable energies 5,000 face masks and food parcels 3,444 donated to Collector Partners during the confinement by COVID-19, in collaboration with Arca Continental, Bepensa and Coca-Cola Foundation $ Collector Partner 1,451 micro, small, and medium enterprises as collection points throughout the Mexican Republic, which we call Collector Partners 24,000 indirect jobs collectors and waste pickers 1,172 direct collaborators 41% progress towards neutralizing Neutralizing the the water footprint Water footprint #WORLDWITHOUTWASTE coca-colacompany.com We collect the equivalent of 6 out of every 10 PET bottles that our shareholders put on the market ༧ Our Auditorium Museo Auditorio" PETSTAR Museum had 10,834 virtual visitors and 2,039 face-to-face visits Sustainability Report 2020 More than 11 million pesos in social investment PETSTAR 100 Overall absenteeism 0.42% vs the target which is 0.80% Global turnover 1.62% vs the target which is 1.80% We serve more than 900 boys and girls, children of collectors and urban waste pickers from a Children's Rights perspective, through our alliances, improving their development and quality of life We achieved the goal of "neutralizing PETSTAR our CO carbon footprint" NEUTRAL NEUTRASON FOOTPRINT We managed to reduce our waste 000 by 64% Sustainability Report 2020 PETSTAR 7#58 WHO WE ARE? SAN CHA Our presence in the country Creating value | Who we are? Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs 3 CP Monterrey Central Office We are a 100% Mexican company that is part of the Mexican Coca-Cola Industry. We are leaders in the collection and recycling of PET containers worldwide. We have the largest food grade PET recycling plant in the world'. Collection Plants 1. Xalostoc 2. Guadalajara 3. Monterrey 4. Toluca 5. Queretaro 6. San Luis Potosi 7. Merida 8. Acapulco External Operation Aragon 2 CP Guadalajara Recycling Plant 6 CP San Luis Potosi 5 | CP Queretaro Recycling Plant CP Toluca 4 1 CP Xalostoc Central Office EO Aragon 8 CP Acapulco 1) In 2014, PetStar was named the "World's Largest Food Grade PET Recycling Plant" by PCI PET Packaging Resin and Recycling, Ltd. GRI 102-2. 7 CP Merida Sustainability Report PETSTAR 9 2020#610 Sustainability Report 2020 PETSTAR eating value Who we are? | Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices PetStar Sustainable Business Model E> Organizational culture Creating value | Who we are? Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs SUTVARENNE GROWLS MISSION PHILOSOPHY OF EXCELLENCE SUSTAINABILITY ZERO PLASTIC LEAKAGE CIRCULAR ECONO NCLUSIVE RECOVERY Our PetStar Sustainable Business Model (PSBM) has a 26-year history and is a benchmark of excellence in circular economy for PET packaging. We are integrated from the collection of the bottle to the incorporation into new containers with recycled content, generating value in three aspects: SOCIAL: Through our PetStar Inclusive Collection Model (PICM) we promote social mobility and the recognition of the rights of PET bottle collectors and base reclaimers of PET waste. In addition, we work in partnership with other representatives in order to guarantee that our workforce is completely child labor free. ENVIRONMENTAL: We collaborate in the generation of a cleaner environment, removing 3,440 million bottles per year from the environment, equivalent of 6 out of every 10 bottles that our shareholders, part of the Mexican Coca-Cola Industry, put on the market. Likewise, in the process of converting packaging into recycled resin, we reduced the emission of greenhouse gases against virgin resin by 100%, achieving our goal of being a carbon neutral company by 2020 (see in the Planet chapter). ECONOMIC: We ensure that our operations work under a profitable scheme, ensuring that the price of PetStar's recycled resin is competitive. In addition to promoting the generation of direct and indirect jobs for 24,000 waste pickers and collectors. The engine of our PSBM is innovation and continuous improvement, which is why we work with the highest quality standards from our collection process to our recycling process, reiterating our commitment to operate with full sustainability in line with the Sustainable Development Goals, the Global Compact and the New Plastics Economy Global Commitment. →PETSTAR PETSTAR V Misstory It is our aim to promote the preservation of the environment in benefit of future generations by implementing innovative solutions to make the PET bottles sustainable, which we efficiently collect and recycle to produce high-quality food grade resin with social responsibility. Vistory PetStar wants to become a worldwide reference of excellence through its inclusive collection model of the PET bottles, that with talent, commitment, innovation and well-being, we give social and environmental value to our shareholders, contributing to being a solution for climate change and compliance with the SDGs, inspiring others to think sustainable. [email protected] www.petstar.mx SAFETY Coca-Cola Bopensa NAVAR ECO Mexico Execution of all our work placing our integrity and the integrity of our co-workers and visitors first. HONESTY Impeccable management of the company's resources, Information, personnel management and rejection of any corrupt practice. RESPONSIBILITY Proper execution of all tasks agreed upon, after reflection and evaluation of the consequences of these acts. SERVICE Personal and team proactive disposition to identify, evaluate and give an opportune, effective and courteous response to the requirements and concerns of internal and external clients. TRUSTWORTHINESS Acquisition of credibility thanks to the consistent and impeccable fulfillment of commitments. RESPECT Acceptance of opinions, characteristics and the way of being of others without prejudice or discrimination. At PetStar we are in charge of internalizing these values, so that they live on a daily basis contributing to global sustainability and respect for the fundamental principles of the Global Compact and the Earth Charter. 號 TOP VALUES NEUTRAL PETSTAR 8 CARBON Economic Value FOOTPRINT 5 SPR DECENT WORK AND QUSTRY MON GRI 102-2, 103-1, Earth EQUALITY 11 STANABE CES ANNFRASTRUCTURE AND COMMENTS 12 COMPON 103-2, 103-3. Charter. I. AND PRODUCTION со 15 LAND LIFE t 15050001 5000 1900 022000 Environmental Value COLLECTION PROCESSES Innovation Continuous CUSTOMERS MARKE Improvement RECYCLING * Social Value #WORLDWITHOUTWASTE coca-colacompany.com VISION Sustainability Report 2020 PETSTAR 11#7Creating value Who we are? | Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices Corporate governance We set up operations in 1995 as a pioneer company in the collection of PET and other plastics. We established ourselves as PetStar SAPI de CV in 2006. Our corporate governance structure is set out in the following scheme: 12 Sustainability Report 2020 PETSTAR'S ADMINISTRATIVE COUNCIL TECHNICAL COMMITTEE AUDITING AND JAIME CÁMARA CREIXELL CORPORATE PRACTICES CEO COMMITTEE CORPORATE AFFAIRS AND SUSTAINABILITY COMMITTEE PETSTAR GRI 102-2, 102-5, 102-18, 102-19, 102-20, 102-22, Earth 102-23, 102-24, 102-26,102-27, 102-28. Charter. I, III, IV. E> Our shareholders Creating value Who we are? Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs BERNANDO SALAZAR SALAZAR Recycling Operations Director JAIME GÓMEZ RIVERA Collection Operations Director ROCÍO SALGADO LÓPEZ Administration and Finances Director ALFREDO ARZALUZ BELTRÁN Human Capital and Legal Director CARLOS MENDIETA ZERÓN Sustainability Director At PetStar we collect 6 out of 10 bottles that our shareholders put on the market. Our integration is the result of the synergy of efforts in favor of the sustainability of various bottlers of the Coca-Cola System in Mexico: Arca Continental has a 49.90% shareholding; Coca-Cola de México 30.00%, Bepensa Bebidas 10.06%, Corporación del Fuerte 5.04%, Corporación Rica 2.20%, Grupo Embotellador Nayar 1.84% and Embotelladora de Colima 0.96%. ARCACONTINENTAL Arca Continental is the second largest Coca-Cola bottler in Latin America and one of the most important in the world. MEXICO 37,667 COLLABORATORS 23 PRODUCTION CENTERS 160 DISTRIBUTION CENTERS ECUADOR 9,604 COLLABORATORS 6 PRODUCTION CENTERS 70 DISTRIBUTION CENTERS UNITED STATES OF AMERICA 9,419 COLLABORATORS 12 PRODUCTION CENTERS 52 DISTRIBUTION CENTERS PERU 4,574 COLLABORATORS 6 PRODUCTION CENTERS 72 DISTRIBUTION CENTERS Arca Continental SAB de CV is a company dedicated to the production, distribution, and sale of beverages under the brands owned by The Coca-Cola Company, as well as salty snacks under the brands Bokados in Mexico, Inalecsa in Ecuador, and Wise and Deep River in the United States of America. The organization's corporate offices can be found in the city of Monterrey, in the state of Nuevo León, Mexico. With an outstanding history of more than 95 years, Arca Continental is the second largest Coca-Cola bottler in Latin America and one of the most important in the world. In its Coca-Cola franchise, the company serves a population of more than 123 million in the northern and western region of Mexico, as well as in Ecuador, Peru, the northern region of Argentina, and the southwestern region of the United States. Arca Continental is listed on the Mexican Stock Exchange under the symbol "AC". 102-6, GRI 102-45. ARCACONTINENTAL COMPANY OPERATIONS ARGENTINA 2,095 COLLABORATORS 3 PRODUCTION CENTERS 25 DISTRIBUTION CENTERS Sustainability Report PETSTAR 13 2020#8Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices Coca-Cola México Coca-Cola de México is a total beverage company that has been working in the country for more than 90 years with the purpose of refreshing the world of its thirst and making a difference. It offers a portfolio for all lifestyles with more than 60 brands, in 10 different beverage categories, of which 45% are low or no calories. Ades FRESCA 154 SOUT SHUNDE tel ciel FANT Honest OWE DE Sprit zero SANTA CLARA Coca-Cola Bepensa Bepensa is a Mexican business group, made up of more than 40 companies grouped into 5 business units: Bepensa Bebidas, Bepensa Motriz, Bepensa Industrial, Bepensa Servicios Financieros and Bepensa Spirits. Together, they provide employment and well-being of more than 14,000 people in Mexico, the Dominican Republic, and the United States. Its dozens of brands, many of them global leaders in their categories, look to satisfy the needs of its more than 350 thousand registered customers and millions of consumers in those 3 countries. Bepensa Bebidas is the Bepensa division that is part of the Mexican Coca-Cola Industry, specializing in the production, bottling and distribution of a portfolio of more than 30 brands of soft drinks in the states of Yucatán, Campeche, and Quintana Roo. Since 2009 it has been recognized as a Socially Responsible Company for its active and voluntary contribution in improving the social, economic, and environmental environment, and since 2015 it has received the distinction awarded by the Great Place to Work Institute, recognizing it as one of the best companies to work for in Mexico. CORPORACION DEL FUERTE It is a bottling group of the Mexican Coca-Cola Industry that has contributed to Regional Development for 44 years, and is made up of three franchises, located in the south of Chihuahua in Ciudad Cuauhtemoc, in the north of Sinaloa in the city of Los Mochis and in the State of Baja California in the city of Tijuana, where they give employment to more than 3,700 male and female collaborators. They have 13 categories and 83 brands with more than 450 ready-to-drink presentations that adapt to all tastes and occasions, serving a population of 3.7 million people. RICA Corporación RICA It is a company with more than 70 years bottling and marketing carbonated beverages, water, juices and nectars and non-carbonated beverages of the Coca-Cola family. It has a solid infrastructure and logistical capacity to meet the needs of its customers through two bottlers, located in Pachuca, Hidalgo, and Cuautla, Morelos, as well as 2 production centers and 14 distribution centers. GRUPO EMBOTELLADOR NAYAR Embotelladora del Nayar was founded in 1953 in Tepic, Nayarit, distributes Coca-Cola brand products and provides service to more than 6,000 customers. It has 12 distribution centers in the state of Nayarit. It currently produces and distributes beverages for the Coca-Cola Company in 9,600 points of sale in the north of the state of Colima and south of Jalisco. ECO EMBOTELLADORA DE COLIMA Created in 1955 in Colima, it currently produces and distributes Coca-Cola Company beverages in 9,600 points of sale, reaching more than 65,000 homes in the north of the state of Colima and much of the southern part of Jalisco. 14 Sustainability Report 2020 PETSTAR CORPORACION DEL FUERTE Creating value Who we are? Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs 5.04% ARCACONTINENTAL Coca-Cola México 49.90% GRUPO EMBOTELLADOR NAVARO 1.84% ECO EMBOTELLADORA DE COLIMA 0.96% RICA Corporación RICA 2.20% 30.00% Bepensa 10.06% Sustainability Report PETSTAR 15 2020#916 Sustainability Report 2020 PETSTAR Calidad 1 PVC 2 P Uppn Ab Upps Aly on A2 Wypm Atv Alopm A1 y PORLAG 10:32 A Vienodate 082 Abv 0.824 Abx 18 AS y 829 AD Pole su 7 PET Priks ta Racha (2) 2 17% ATINAL NA 200m Abe 110 AT y 1 AV... A Adv 100 EyKINEZ 50 MCP 11 Ma 12 12 SAM 14 De 13 Eps Ai Coands Seguridad 0 ALPL d Creating value Who we are? | Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices E> Creating value | Who we are? Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs Structure of the Board of Administration The Board of Administration is our highest management body and is made up of ten directors, each with an alternate. These directors are shareholders, partners, collaborators or officers of a shareholder (or person affiliated with them), so there are no independent directors, and no remuneration has been established for them. The Chairman of the Board of Administration does not hold an executive position within PetStar. We have 3 types of shareholders with the right to appoint members of the Board: I. Arca Continental has the right to 4 members within the Board of Administration and the appointment of its Chairman. II. Coca-Cola de México has the right to 3 members within the Board of Administration. III. Bepensa Bebidas, Corporación del Fuerte, Corporación Rica, Grupo Embotellador del Nayar and Embotelladora de Colima, may have 3 members on the Board of Administration. Committees within the Board of Administration Audit and Corporate Practices Committee.- consists of 6 members and their respective alternates, with 2 being designated for each 1 of the different types of shareholders; the President of this committee is appointed by all its members. Technical Committee.- made up of 4 members and a General Director. The 4 members are appointed as follows: Arca Continental, two; Coca-Cola de México, one; and the last one is appointed by the other shareholders. Corporate Affairs and Sustainability Committee.- It is made up of 4 members and the CEO. The appointment of the Directors follows the same nature as that of the Technical Committee. Compensation for Senior Management is determined within the Board of Administration based on compliance with the previously authorized work plan. Similarly, communication issues are evaluated, and the Sustainability Report is approved. The General Director reports to the Board of Administration through a monthly written report and by appearing in person at quarterly Board meetings where the impacts, risks, and opportunities of an economic, social, and environmental nature are analyzed. Mechanisms of operation Financial and Tax, Environmental, Social and Information and communication systems in the Governance Risk Management company are a fundamental element for the achievement of strategies and objectives. On the one hand, they allow the correct measurement of all the transactions carried out in the operation of the company in all its areas (manufacturing, human capital, administration and finance, logistics, communication, and social responsibility) generating concrete results that guide management and to shareholders. On the other hand, they keep the communication flow moving through various technological tools, at all levels of the organization, supporting the interaction of its participants to achieve the goals. Finally, they manage to maintain a knowledge base that is used to look through and provide feedback on the actions taken by the company's management and to protect resources and capitalize on experience. The management of the financial information of PetStar SAPI de CV is issued in accordance with the Financial Reporting Standards and is audited by Ernst & Young Global Limited, who in turn validate the correct tax management through the tax opinion that is presented to the authority. As part of the risk management of the company, at PetStar we form an Internal Risk Committee of IMCR (Incident Management and Crisis Resolution) which is made up of the General Director and Area Directors of the company in order to analyze and determine procedures for risk control in the operation, business continuity and brand reputation. The committee meets once a month and is linked to the IMCR Committee of the Mexican Coca-Cola Industry (MCCI). Since the declaration of the health pandemic due to COVID 19, in March 2020 the management of this committee has been on a daily basis with the focus on assessing health risks and key indicators to ensure business continuity, safety and well-being of staff, as well as to comply with the delivery program to customers to ensure that they continue to offer sustainable packaging to society. GRI HB GRI 102-35, 102-36, 102-37. GRI 102-11, 102-15, 102-29, 102-30, 102-31. Sustainability Report 2020 PETSTAR 17 E>#1018 Sustainability Report PETSTAR 2020 Creating value Who we are? Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs E> Creating value Who we are? Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs Risks in the operation In PetStar there is continuous identification of hazards, the evaluation of risks and the determination of controls that allow eliminating or controlling the risks to which the collaborators (workers, visitors, suppliers, society, and contractors) are exposed when carrying out their activities and preserving to the environment. Risk assessment update When an update is made to the risk assessment, one or more of the following events should occur: a) New legislative norms or modifications to existing ones that have an impact on PetStar's operations. b) Creation or modification of activities developed within the PetStar processes. c) Accidents or incidents, health risks, emergencies, and environmental phenomena. Accidents: work-related events, in which: injury to collaborators, illness, or fatality occurs. ● Health risks: damage to the health of a population derived from a dangerous situation, such as the appearance of a pandemic or the effects of certain environmental factors. ● Emergencies: unwanted and unplanned event, caused by natural events or by human intervention, where the integrity of people, the environment and that of the facilities themselves is exposed. d) Internal and / or external audit result and suggestions made by PetStar collaborators, contractors, and visitors. Once the risks have been identified, the likelihood of harm and the level of risk is determined. According to our risk matrices, we have identified a total of 47 risks in our operation. With this, control measures are carried out involving all interested parties, maintaining a healthy and safe environment. O Control measures: For the selection of control measures, the following priorities are considered, considering: 1. Elimination 2. Substitution 3. Engineering controls 4. Signs, warnings and / or administrative controls 5. Personal protective equipment. O Dangers: Understanding the dangers as a situation, act, or condition with the potential to cause harm, in PetStar, to operate in a safe and healthy environment, we identify the following dangers: MECHANICAL Motorized vehicle Machinery or moving part Dangerous atmosphere Slippery, uneven surface, obstacles on the floor Work at height High/low temperature surfaces/material Sharp cutting surfaces Objects stored in height Moving cargo Tool/object manipulation Fluids under pressure, pressurized equipment Objects/equipment Projected particles PHYSICAL Noise Vibrations Non-ionizing radiation Cold hot Air currents Ventilation Humidity Atmospheric pressure lonizing radiation ERGONOMIC Repetitive movements Inadequate workspace Inadequate lighting Overexertion Improper posture க CHEMICAL Chemical substances, vapors, compounds, or chemical products in general and/or reaction. Dust (particulate matter) FIRE AND EXPLOSION Flammable material, fluids under pressure, pressurized equipment + ELECTRICAL Electric power PSYCHOSOCIAL Working conditions: Type of work, degree of autonomy, isolation, promotion, management style, turnicity, rhythms and working hours and psychological harassment Night shift work, monotony and/or repeatability, long working hours BIOLOGICAL Biological agents Animals, insects Sustainability Report 2020 PETSTAR 19 E>#111 FIN MBRE DE LA POBREZA RO AR ACCELERATING ACTIONS TO ACHIEVE THE SDGS 20 20 Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices DECADE OF >>>ACTION To meet the United Nations Sustainable Development Goals • In 2020, 75 years after the formation of the United Nations and after the COVID-19 crisis, the call to action at three levels became urgent: • Globally to ensure greater leadership, more resources, and smarter solutions against the Sustainable Development Goals. • At the local level that include the necessary transitions in policies, budgets, institutions, and regulatory frameworks of governments, cities, and local authorities. • To people, including youth, civil society, the media, the private sector, trade unions, academia, and other stakeholders, to generate an unstoppable movement that drives the necessary transformations. The decade of action requires accelerating sustainable solutions addressing the world's major challenges; from poverty and gender equality to climate change, inequality and closing the financial gap, taking the 2030 Agenda as the roadmap to build the future we want for people, for the planet, prosperity, peace and alliances. PARTNERSHIP Implement the agenda through a solid global partnership. PEOPLE End poverty and hunger in all forms and ensure dignity and equality. Sustainable Development PLANET Protect our planet's natural resources and climate for future generations. PEACE Foster peaceful, just and inclusive societies. PROSPERITY درا Ensure prosperous and fulfilling lives in harmony with nature. Sustainability Report PETSTAR 21 2020#12Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices E> Creating value | Who we are? Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs The 5Ps of the Sustainable Development Goals The 2030 Agenda for Sustainable Development of the United Nations seeks to follow a plan of action in favor of people, the planet and prosperity, as well as to strengthen universal peace within a broader concept of freedom, through 17 objectives and 169 goals that seek to realize the human rights of all people and achieve gender equality and the empowerment of all women and girls. Here are the critical areas for humanity and the planet where goals and targets promote action. Transforming our world: the 2030 Agenda for Sustainable Development At PetStar we are well aware of the challenges this decade demands, which is why we have adopted the United Nations Sustainable Development Goals as a roadmap within our Sustainable Business Model, allowing us to focus our efforts not only on the generation of social, environmental and economic value throughout our chain, but also to strengthen our resilience capacity and continue on the path towards more challenging goals that contribute to the fulfillment of the 2030 Agenda. PEOPLE We are determined to end poverty and hunger in all its forms and dimensions, and to ensure that all human beings can realize their potential with dignity and equality and in a healthy environment. 1 NO POVERTY QUALITY 3 GOOD HEALTH EDUCATION AND WELL-BEING ZERO HUNGER 5 сл GENDER EQUALITY PLANET We are determined to protect the planet from degradation, including through sustainable consumption and production, sustainable management of its natural resources, and urgent action to address climate change, so that it can meet the needs of present and future generations. CLEAN WATER AND SANITATION 12 RESPONSIBLE CONSUMPTION AND PRODUCTION со 13 CLIMATE ACTION LIFE 14 BELOW WATER PROSPERITY We are determined to ensure that all human beings can enjoy a full and prosperous life, and that economic, social, and technological progress occurs in harmony with nature. 15 LIFE ON LAND AFFORDABLE AND CLEAN ENERGY 11 AND COMMUNITIES SUSTAINABLE CITIES 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE :::: REDUCED 10 INEQUALITIES PEACE We are determined to foster peaceful, just, and inclusive societies that are free from fear and violence. There can be no sustainable development without peace, and no peace without sustainable development. 16 AND STRONG PEACE, JUSTICE INSTITUTIONS K T PARTNERSHIP We are determined to mobilize the means necessary to implement this Agenda through a revitalized Global Partnership for Sustainable Development, based on a spirit of greater global solidarity and focusing particularly on the needs of the poorest and most vulnerable, with the collaboration of all. countries, all stakeholders, and all people. 17 PARTNERSHIPS FOR THE GOALS 22 Sustainability Report 2020 PETSTAR DECENT WORK AND ECONOMIC GROWTH M Sustainability Report PETSTAR 23 2020 E>#131 POVERTY 2 ZERO HUNGER SSS 3 GOOD HEALTH AND WELL-BEING W QUALITY EDUCATION 5 GENDER EQUALITY + ETSINE PETSTAK Ooo PEOPLE 24 Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs E> We are determined to end poverty and hunger in all its forms and dimensions, and to ensure that all human beings can realize their potential with dignity and equality and in a healthy environment?. E Top achievements We invested more than $900,000 pesos in courses and training for our collaborators. We implement protocols for the prevention, identification, care, and monitoring of COVID-19 cases to our collaborators. We donated 5,000 face masks and more than 3,000 pantries to our Collector Partners, during COVID-19 lockdown, in collaboration with our shareholders Arca Continental, Bepensa and Coca-Cola Foundation. We donated 212 thousand face masks to the Health Sector in collaboration with our shareholders Arca Continental, Coca-Cola de México, Bepensa, Corporación del Fuerte, Corporación RICA, Embotelladora del Nayar and Embotelladora de Colima. We advanced 90% in the medical evaluation of our collaborators through our Health Passport program. Our people The staff that works with us is our greatest strength, thanks to them we have reached where we are now, and we know that to achieve the ambitious goals that we propose it is necessary to have the best equipment, so we try to provide them with the best facilities for their daily well-being, as well as training and programs that motivate them to forge their development and growth, both work and personal. Workforce Previous years we reported different age ranges, this year, the ranges shown here are the final ones and those that we will report from now on. >> 2020 42 139 261 468 262 18 to 20 years old 9 Women 33 Men 21 to 25 years old 38 Women 101 Men 26 to 30 years old 101 Women 160 Men WOMEN ●MEN 1,172 collaborators 33% 67% 390 WOMEN 782 MEN 31 to 40 years old 145 Women 323 Men 41 onwards 97 Women 165 Men 2017 2018 2019 Women 348 378 383 Men 725 712 800 TOTAL 1,073 1,090 1,183 18 to 25 years old 175 172 172 26 to 45 years old 790 813 795 46 onwards 108 TOTAL 1,073 105 1,090 216 1,183 2) United Nations (2015) "Resolution approved by the General Assembly on September 25, 2015 "(A/RES/70/1) GRI 102-4, 102-7, 102-8, 202-2, 401-1, 401-2, 404-2, 404-3, 405-1 1 POVERTY 5CEMBER ESCALITY 10 DALIES REDUCED htt Sustainability Report PETSTAR 25 2020#14>> Workforce by region and position. LOCATION EXECUTIVES ADMINISTRATIVE O+ Creating value Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs OPERATIVE O+ CP Acapulco 7 7 43 8 CP Toluca 6 10 80 50 50 Central Office 4 1 30 32 CP Guadalajara 10 4 26 CP Merida 8 9 26 30 44 9 CP Xalostoc 9 8 102 57 CP Monterrey 10 4 29 26 CP Queretaro 9 5 31 24 CP San Luis Potosi 10 4 48 14 Recycling Plant 1 13 13 264 76 TOTAL 5 110 95 667 294 CP: Collection Plant 26 Sustainability Report 2020 PETSTAR 6 Executives 1 5 WOMEN MEN 205 Administratives 95 WOMEN 110 MEN 961 Operators 294 WOMEN 667 MEN Human Capital Creating value ❘ Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs PetStar... Bien! It is a program in which our collaborators develop a culture of well-being and commitment to their health, adopting a healthy lifestyle and preventing diseases. Physical Human Capital Policy We are committed to the well-being, development, and integrity of our collaborators through the attraction of talent, the creation of an organizational culture sustained in an inclusive, participatory, innovative, safe, teamwork environment, respect for their rights and commitment to sustainability, to promote loyalty and identity with the organization and thereby contribute to the achievement of labor peace and its objectives. Social and Family Evaluation of the labor culture and climate ETADs Recognition Schemes Digital Platform Recognition Social Wall for PetStar Bien Social New Year's gathering Guiding Principles Economic Wages and Salaries Benefits Conferences Move for... PetStar Bien! Healt and Safety Programs in the workplace Wellness ✓ PETSTAR Spiritual Cien! No Discrimination Religious Ceremony New Year's Event Emotional Passport Living the Values Annual Communication Plan Professional Development National Institute for Adult Education PAC Leadership Training Program Virtual Information Center 3DR 360° Evaluation Ideas in Action 2. 3000 HEALTH CODER WE SUPPORT AND MELL EQUALITY GRI 102-41, 201-3, 205-2, 401-1, 401-2, LOBAL CO 3. 404-2, 404-3, 405-1, 412-2. Well-being model PetStar... Bien! It is our model of well-being for all our collaborators, structured through the development and implementation of various programs aligned to the search for balance of the different dimensions of a person's life such as: physical, emotional, professional, spiritual, economic development, social and family. Sustainability Report PETSTAR 27 2020#15Creating value Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs E> Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs Training and development Training courses Our training program aims to stay at the forefront of best practices in the recycling and sustainability sector. The talent development process is supported by management by collaborators competencies, based on two types: organizational and leadership, which are the basis for the selection, evaluation, training, and development of collaborators. Due to the pandemic unleashed by COVID-19 and as to preserve the operation and the entire workforce, at PetStar we had to adjust the training budget considerably, for this reason the number of courses was reduced by 38% which affected the hours of training given, but not the number of collaborators trained, because all our workforce received at least one course during the year. Counselling Program We have a strategic mentoring program for the professionalization for our workforce focused on the development and strengthening of their capacities, knowledge, and competences from their entry into the company. With this program we seek to guarantee that our new collaborators have the support of an experienced professional to accompany them in their integration into the company and their work area. This year we had 32 tutors. Virtual Training Center Due to the geographic dispersion of our operations and in order to optimize training times, we implemented a distance education technological tool called: "PetStar Virtual Training Center" which is based on a platform for the administration of training Learning Management System (LMS) that is, of the e-learning type. Ideas in Action With this program we seek to promote the intelligent participation of all collaborators in the improvement and innovation of the company through the generation, validation and implementation of ideas aligned to the strategic purposes of the organization. The main purpose is to achieve the participation of at least 30% of our collaborators to generate and implement 30 improvement ideas to be executed during the year. Training 260 290 179 Trained collaborators 1,090 1,183 1,172 Hours of training 200,202 200,600 18,336 Hours of training per employee 2018 2019 2020 MDP: MILLIONS OF PESOS, FOR ITS INITIALS IN SPANISH. 28 Sustainability Report 2020 183.67 169.56 15.65 Investment $2.60 mdp WE SUPPORT PETSTAR GRI 401-2, 404-1, 404-2, LOBAL COM Earth 6. 404-3, 405-1, 412-2. Charter. ווד 1 POVERTY AQUALITY EDUCATION $2.80 mdp $973,846.86 WE SUPPORT 3,4, 5,6. ALITY EDUCATION QOPTION ANDHRASTRUCTURE Trained collaborators 1,055 Hour of training 1,301 Courses 53 Centro de Formación Virtual PETSTAR Issued ideas 254 Accepted ideas 25 ideas in action Sustainability Report 2020 PETSTAR 29 E>#1630 30 PERST Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs E> Leadership Model for Excellence We promote our competitiveness based on an innovative business model, oriented towards sustainability and on the development of a high-performance culture, based on the definition of strategic objectives, generating value for shareholders, clients, collaborators, Collector Partners and community, developing leadership skills and an organizational culture based on a philosophy of excellence. We have an executive training model, which is designed to achieve effective leadership at all levels of command, taken from a profile of defined competencies for PetStar, with which we seek to ensure the achievement of objectives within an environment of well-being of the personal. As part of this process, we define a leadership profile based on the development of 15 competencies aligned with our Sustainable Business Model: Vision Inputs: Excellence philosophy; PetStar's Sustainable Business Model Processes for Human Capital Management Team leadership Improvement and innovation Motivation to others PetStar Bien! Criterion to decide Conflict management Ability to adapt to change Interpersonal communication Plan and organize Respect diversity PE Security Coaching and developing others Sustainability GRI 401-2. Report PETSTAR 2020 Customer service Integrity Results promoter Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs DEVELOPMENT OF LEADERSHIP SKILLS Integrity Respect for Diversity Outputs: Vision Plan and organize Security Integrity Respect diversity Results promoter General Management Empowerment and Teamwork Team leadership Conflict management Interpersonal communication Work Harmony Coaching and Development of Others Formation and Development Leadership for Excellence Motivation and Recognition Motivation to others Improvement and Innovation Criteria to decide Ability to adapt to change Improvement and innovation Customer Service LEADERSHIP SKILLS ASSESSMENT Well-being of the Collaborators High performance Generation of Social, Environmental and Economic Value Work harmony Sustainability Report PETSTAR 31 2020#17Creating value Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs These competencies are evaluated and developed continuously through our comprehensive program that includes different actions such as: annual performance evaluation, 360° evaluation and the training program, which consists of approximately 90 hours of training (ten workshops, two talks awareness raising and a didactic process for the accreditation of this program); additionally we are developing a library of digital resources, and implementing reading circles and training programs as professional coaching interventions. From the focus of our Leadership Model for Excellence, each of PetStar's leaders conducts themselves under the following 12 principles: 2 A PetStar Leader conducts under the following principles * generates results creates, participates and promotes synergies creates an environment with meaning and purpose PetStar Leadership Principles* takes decisions 5 motivates others Sustainability PETSTAR 32 Report 2020 facilitates training and development of the team communicates effectively 7 practices and promotes values, dignity and respect for human rights promotes well-being of the team 8 respects the policies and codes of the company 10 promotes competitivity, improvement and Innovation of its processes 11 participates and promotes teamwork 12 *Observable behaviors derived from the Competencies of the Leadership Model. Creating value | Who we are? Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs இக்கம் Performance Evaluation (3DR) The strategic goal of the Annual Performance Evaluation System is to increase the productivity, competitiveness, and comprehensive development of our PetStar leaders. With our 3DR program we evaluate the performance of our leaders and identify talent for their development, as well as the detection of their training needs and, finally, we recognize the achievement of objectives and outstanding performance and in doing so, contributing to strengthening our culture of teamwork and achievement of results. DECENT WORK AND Sustainability Report PETSTAR 33 33 2020#18Creating value Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs E> Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs E> High Performance Work Teams The High Performance Work Teams (ETADS: for its initials in spanish) are an organizational structure with which we look to generate productive and efficient processes on the part of our work partners through an empowerment mechanism, where they are trained to assimilate, plan, evaluate, control, improve and innovate their daily tasks, responding accordingly. timely prevention and solution of problems for the fulfillment of their KPIs (Key Performance Indicators). On a monthly basis, all teams seek to generate an idea that creates value, be it production, security, purchasing or a process that they believe they can improve, including the format and suggested action to be implemented. Around 420 ideas are generated, and the following points are considered for the different teams: 1. Number of incidents during the month in the area. 2. 5S's³ (classification, order, cleanliness, standardization, discipline) 3. Area specific KPIs 4. Improvements and innovations issued 5. Absenteeism 6. Customer complaints 7. Level of satisfaction between teams (Customer- supplier) In addition to the training programs and granting of resources, the teams have a scheme of recognition of achievement and an incentive for the improvement and efficiency of their processes. Deliver quarterly information validated by management Process Leaders Perform Recognition Ceremony 4 recognitions during the year (january, april, july and october) Performance measurement based on previously defined KPIs. ONLY 3 TEAMS, ONLY 3 WINNERS GOLD 300 points SILVER 200 points BRONZE 100 points per member per member per member Assign points on social wall. Awards recognition cards to process leaders. PLATINUM (annual)/500 points per member ETADS PETSTAR Human Capital Posts recognitions on social wall, communication boards and email. >>ETADS- Collection and recycling plant 2020 Participating teams 63 Winners 32 Quality of life We have a great commitment to be a good company to work for; As a result, we established different programs to maintain a healthy work environment with competitive benefits that incentivize and motivate our collaborators. Throughout the year, we celebrate important dates and holidays with our collaborators, through gatherings that sometimes include their family members. Additional benefits to staff: Recognition platform Online Classes Orienta PAE4 ▶Savings fund ►Productivity bonuses Life insurance Death aid Promotions In order to capitalize on the commitment, experience, and knowledge of our Human Capital, we promote that each vacancy is filled as a priority with our collaborators. >> Internal promotions 2020 PROMOTIONS GENDER O+ TOTAL AGE RANGE CP Acapulco 0 0 0 CP Toluca 0 0 0 CP Guadalajara 0 0 0 CP San Luis Potosi 0 0 0 CP Merida 0 1 1 26 to 30 years CP Monterrey 1 0 1 31 to 40 years CP Queretaro 1 0 1 31 to 40 years PETSTA CP Xalostoc 1 0 1 31 to 40 years Central Office 1 0 1 41 onwards Recycling Plant 8 2 10 31 to 40 years TOTAL 12 3 15 CP: Collecting Plant 3) 5S IS A PROCESS MANAGEMENT METHOD OF JAPANESE ORIGIN. WE SUPPORT Sustainability 401-2, 34 Report PETSTAR GRI 3. 404-3. 2020 4) PAE (EMPLOYEE ASSISTANCE PROGRAM) DECENT WORK AND ECONOMIC WITH GRI 201-3, 401-2, 404-2, 404-3, 405-1. Sustainability Report 2020 PETSTAR 35#19Creating value Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs E> Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs Top Companies Security and health For five consecutive years we have annually evaluated Brigades and the Safety and Health Committee our culture and work environment through a standardized questionnaire by the Top Companies consultancy. The results of this study allow us to have a reference to the level of acceptance that our collaborators give us, in addition to an audit of policies, programs and procedures, which provide the necessary evaluation elements to be part of the selection process that Top Companies, together with Grupo Editorial Expansión, they determine for the publication of the Ranking of Super Companies, the list where for five consecutive years PetStar has appeared. In 2020 we obtained the 39th place in the category of 500 to 3,000 collaborators. As can be seen in the following table and about last year, we rose 2 places in the ranking, thus demonstrating the commitment and effort to improve the work environment and advance in the consolidation of our organizational culture. Focused on the attention of a possible emergency, we organize groups of volunteers with an attitude of service to form the commission and the emergency brigades in each plant. These volunteers actively participate in training and drills that, in the event of an incident that puts staff at risk, it allows the emergency brigade to provide a timely response for assistance or prevention. TOP >>Brigades y SHC Brigades: 199 collaborators SHC: 50 collaborators BRIGADAS PETSTAR Year Staff Approval Place in Top Ten the Ranking 2015 80.02% 91.57% 44 PETSTAR 2016 81.61% 89.98% 41 2017 77.47% 80.46% 48 companies. 2018 77.21% 84.01% 44 2019 77.08% 84.01% 41 2020 77.63% 82.55% 39 2017 Change of methodology Health passport Based on the National Health Card, committed and concerned about the health and well-being of our and our collaborators, we created our "Health Passport" where we have a record, and we motivate our and our collaborators to have healthy habits that range from healthy eating to medical check-ups and a good sleep cycle. With the Passport, the individual goes to weekly or monthly reviews with the Safety, Health and Environment Leader or nursing staff, where they carry out a checkup of their basic indicators (waist, weight, height, body mass, etc.) Later, monthly check-ups are scheduled with the doctor or in their Mexican institute for social security (IMSS - its initials in Spanish) clinic in a preventive way or if they suffer from a chronic disease, in the same way they go monthly or weekly and take their records in their passport for a control on their state of health. To complement their process, we suggest that collaborators sign up for the "Move for PetStar... Bien!" competition, where they receive nutritional and physical activity counseling in addition to their progress being monitored. Throughout the year we managed to get a 90% advance in the medical assessment of our collaborators through our Health Passport program. PETSTAR Move for PETSTAR PETSTAR Héroes "Safety and Health in the Family" photography contest This year, due to the health emergency, a contest was held from home where the families of our collaborators participated, capturing in a photograph how their family takes care of itself against COVID-19 to be healthy and safe. This as to raise awareness and publicize the different actions and safety habits that each family group carries out from home to prevent the spread of COVID-19. In total, 81 families participated and the collaborators in the plant chose the winners through a system of voting. "Heroes Against Coronavirus" In conjunction with the Mexican Coca-Cola Industry, we invited our collaborators and their families to participate in the drawing contest "Heroes against Coronavirus", as part of the awareness-raising actions contra el coronavirus on prevention measures to avoid contagion by COVID 19 and the importance of continuing to apply these measures at home. We have the participation of 23 sons and daughters of collaborators between 5 and 15 years old, divided into 3 categories and with a total of 12 winners. CATEGORIES Recognition "Zero Accidents" Cultivating the culture of safe work, at PetStar we recognize the plants that have years without accidents, highlighting the effort and achievement of each plant to be safer. In this event we integrate the families of our collaborators with the purpose of sharing with them the importance that safety has for us, the care we take to provide the adequate infrastructure to all collaborators and the efforts to contribute to the development of the culture of safety. ACCUMULATED YEARS WITHOUT ACCIDENTS 1-2 years BRONZE 3-4 years SILVER 5-9 years GOLD +10 years PLATINUM ་་་་ 0 ACCIDENTS PETSTAR 2 3 ACA TOL MER SLP REC QRO XAL MTY GDL 2021 2021 2021 2021 2021 2021 2021 2021 2021 31 13 13 22 18 14 07 11 05 ENE MAR ABR ABR MAY SEP OCT ост DIC 36 2020 Sustainability Report AND PERASTRUCTURE 201-3, 403-1, 403-2, PETSTAR GRI 403-3, 403-4, 413-1. QWTON PETSTAR Pasaporte Salud (Hombres de 18 a 65 años) PETSTAR Pasaporte Salud (Mujeres de 18 a 65 años) 2020 Sustainability Report PETSTAR 37 E>#2038 PetStar against COVID-19 "The COVID-19 pandemic is more than a public health emergency. It is an economic crisis. A social crisis. And a human crisis that quickly turns into a human rights crisis” António Guterres, UN Secretary General Aligned with the vision of our PSBM, since the beginning of the pandemic we have placed people at the center of decisions, acting with Responsible Business Conduct throughout our value chain. an From the beginning of the pandemic, our collection and recycling activities were considered essential action. The collection was considered as a basic sanitation activity, and recycling, being destined for food grade products, was also considered an essential activity during the contingency, which allowed us to continue operating, moving us to a rapid evolution to adapt the facilities and to care for all the people involved, prioritizing the health and conservation of people's work. Sustainability 403-1, 403-2, Report 2020 PETSTAR GRI 403-3, 403-4. Creating value Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs Socio Aropiado etStar Contig PETSTAR CA-COLA AUDATE Support to collaborators The strategy with our collaborators was based on maintaining constant communication, particularly with the vulnerable population, which facilitated the implementation of protocols for the identification, care, and follow-up of COVID-19 cases. Actions implemented with our collaborators: 21 weekly videos for collaborators with messages from our CEO (from March 19 to August 14). ● Permanent communication campaign on COVID-19, myths and realities, and case care protocol. Implementation of a "Health Passport" for all collaborators, which includes medical, food and physical activity monitoring. E> Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs PETSTAR CADENA D MO Todos ellos ya se sumaron a la #Cadena DeAnimos pero faltas túl Inscribete al correo [email protected] Tienes hasta el 15 de mayo ¡Contamos contigo! Medical advice to all staff on COVID-19 and generation of a video with testimonials from recovered collaborators. Development of a protocol for timely care and monitoring of COVID-19 cases among collaborators and/or family members. Execution of a strategy for a safe return that included the adaptation of facilities, training and delivery of "protection kits" to all collaborators. Strengthening of the "PetStar... Bien!" program by offering weekly online classes focused on physical and mental health issues. Chain of Encouragement Campaign, which consisted of writing a letter to give encouragement and hope among collaborators; managing to deliver 700 letters to male and female collaborators who continued with the operation. Adequacy of facilities to comply with the necessary protocols to continue a safe operation and avoid contagions. 20 videos for Collector Partners (from March 19 to July 31). 130 RECOMENDACIONES DE SALUD www SAE COBR nos atStar reciclando! A&F ENTALON DISTRIC Pan Creme #PARI Sustainability Report 2020 PETSTAR 39#2140 40 Sustainability Report PETSTAR 2020 Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs E> Support to the community We back up our value chain of Collector Partners, to the adequacy of its operations. We donated 5,000 face masks and 3,444 relief packages (containing food and other essential items) in collaboration with Arca Continental, Bepensa and Fundación Coca-Cola. In addition to generating 21 weekly informative videos from our CEO and communication material for his clients and his own collaborators from March 19 to July 31. During the pandemic, the strengthening of alliances with Dibujando Un Mañana, through CEDIC, and Mayama was vital to ensure the continuity of education, food and health programs focused on the more than 900 boys and girls, sons, and daughters of waste pickers and collectors. In addition to the actions with our value chain, we were able to donate 212 thousand face masks for the Health Sector in collaboration with our shareholders Arca Continental, Coca-Cola de México, Bepensa, Corporación del Fuerte, Corporación RICA, Embotelladora del Nayar and Embotelladora de Colima. YouTube 5mil caretas para nuestros Socios Acopiadores y la entrega de #PetStar Contig 3.444 despensas en todo el país VANS &P clauses Watch the video: Memorias de PetStar ante el COVID-19 Socio Acopiador #PetStar Contigo Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs NO PASA SIN EQUIPO DE PROTECCION PERSONAL Sustainability Report PETSTAR 41 2020#2242 6 12 RESPONSIBLE CONSUMPTION AND PRODUCTION Со CUNATE 13 ACTION LIFE 14 BELOW WATER LIFE 15LAND Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs PLANET We are determined to protect the planet from degradation, including through sustainable consumption and production, sustainable management of its natural resources, and urgent action to address climate change, so that it can meet the needs of present and future generations5. E Top achievements We achieved the goal of "neutralizing our carbon footprint"; Verification of the 2020 GHG Inventory by AENOR MEXICO. 66% of our electrical energy is supplied from renewable sources. We had an overall progress of 41% towards the goal of neutralization of our water footprint. We reduced waste by 64% vs. 2017. We are at 75% progress of zero leakage of plastic. We received the blue badge of the Zero pellet loss program designed by Operation Clean Sweep placing us as the 1st Mexican company to obtain it. We reduced the use of paper by 57% vs. 2017. Our Auditorium Museum had 10,834 virtual visitors and 2,039 face to face visits. 4,587 people used our CO2 calculator. The environmental challenges we face According to the World Economic Forum, climate change represents one of the greatest global risks for this decade, due to the scope of its impacts and large-scale collective action. Even though the Paris Agreement gave the world hope that humanity can effectively meet the challenge of the climate crisis, there is still a wide gap between the current goals and what is necessary to limit the rise in the global average temperature below 1.5° C. 3°C 2ºC 1°C 10 hottest years globally +1.17* you Limit average temperature rise to 1.5 °C WE SUPPORT 5) United Nations (2015) "Resolution approved by the General Assembly on September 25, 2015 "(A/RES/70/1) 7 AFFORDABLE AND DECENT WORK AND Q 7,8,9. Earth Charter. II. ECONOMIC GROWTH M ANDMASTECTURE Sustainability Report 2020 PETSTAR 43 E>#2344 Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices Earth Overshoot Day The Earth Overshoot Day, is the moment in which the planet's consumption exceeds the capacity to renew resources and also to absorb the waste that we produce, making evident the high environmental cost of the over-exploitation of resources in daily life. According to the Global Footprint Network (GFN), to date, the ecological footprint of humans implies the use of resources equivalent to 1.6 planets, reaching 3 planets by 2050 if we continue with this rate of consumption. 2020/1.6 Consumed Planets Consumed 2050/3 Planets In 2020, the Earth Overshoot Day happened on August 22 Plastic pollution in the ocean In 2016 during the World Economic Forum, the Ellen MacArthur Foundation and UN Environment warned that by 2050 there could be more plastic than fish in the ocean, measured in tons, launching the study "The New Plastics Economy: Rethinking the Future of Plastic". 2050 Sustainability Report 2020 PETSTAR E> The New Plastics Economy Global Commitment In 2018, action was taken with the New Plastics Economy Global Commitment, which currently has more than 450 organizations including companies, governments and global NGOs, committed to establishing ambitious objectives for 2025 based on generate a Global Commitment and a Common Vision. It currently has more than 450 signatory organizations between companies, governments and NGOs. UNC environment Fuente: Global Footprint Network (GFN) ELLEN MACARTHUR FOUNDATION NEW PLASTICS ECONOMY United Nations Environment Programme EARTH OVERSHOOT DAY “Breaking the Plastic Wave" On July 23, 2020, a new study was presented by the Ellen MacArthur Foundation, PEW and other actors called "Breaking the Plastic Wave", where an urgent call is made to implement collaborative measures for the next 20 years throughout the chain of value, to reduce 80% of plastic pollution by 2040 considering recycling as 20% of the solution to plastic pollution combined with other solutions. Creating value Who we are? Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs Global Commitment о Eliminate the plastic we don't need. Innovate to ensure that the plastics we do need are reusable, recyclable, or compostable. Circulate all the plastics items we use to keep them in the economy and out of the environment. Mismanaged 44 Ox Reduce 101 10% Dispose 30% 23% 130 17% 20% 84 71 A Substitute Recycle ✓ Sustainability Report 2020 PETSTAR 45#24Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices E> Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs #WorldWithoutWaste In January 2018, Coca-Cola announced its global commitment "World Without Waste" with a commitment of the following goals by 2030: 1. Design. Make 100% of our packaging recyclable globally. Use at least 50% recycled material in our packaging. 2. Collect. Collect and recycle a bottle or can for each one we sell by 2030. 3. Partner. Bring people together to support a healthy, debris-free environment. Further information at: www.coca-colacompany.com Mexico: 1st Place In the Collection and Recycling of PET containers in America. Recycling figures in Mexico by 2020: (according to ECOCE) The recycling industry generates more than 70 thousand direct and indirect jobs. Even with the contingency due to Covid-19, Mexico remains the leader in recycling in America in the recovery of PET containers by collecting more than 51.3% of its containers sent to the market at the same average level of the European Union. It is estimated that by 2025 the rate will grow to 78%. Of the percentage of PET collected in Mexico, 73% is recycled internally and 27% is exported. ▶ Of the percentage of PET that is recycled in Mexico, 53.9% is for food grade packaging (B2B), 21.5% for thermoforming sheet and strip, 13% for various fibers, and 11.6% for non-food packaging. There are more than 27 PET recycling companies in Mexico (4 bottle-to-bottle recycling plants). ▶In the last two decades the recycling industry grew 200%. Corporate Sustainability Philosophy For us, sustainability is the fundamental principle within our business model, as well as the tool to create a different future that favors inclusion, life in harmony and respect for the environment. Through the corporate sustainability system, we contribute to global sustainability by acting locally through the management of our PSBM, recognizing and empowering collectors, waste pickers and other vulnerable communities through inclusive collection and recycling, making development possible of a circular economy that promotes the incorporation of recycled food grade PET resin in the production of new bottles, to avoid the use of more natural resources in the process and reduce to a minimum the generation of waste. In this way, we are able to establish ourselves as an agent that has a positive impact on the fulfillment of the Sustainable Development Goals that favors inclusion so that no person, resource, or container is left behind. » Sustainability System Stakeholders Shareholders Custo Collaborators Civic social organizations Collector partners Scavengers PetStar fans Materiality Study Global Community our Living values Continuous Improvement Ethical Framework Earth SUSTAINABLE DEVELOPMENT Charter. GOALS Circular Economy Innovation INCLUSIVE RECOVERY CUSTOMERS COLLECTION PETSTAK ISO 14001 TOP 10001 PROCESSES - RECYCLING PROCESSES Leadership COM Social Value Intrumental Fiducation Mobility Cat PICM CRIC 群: 150 9001 Environmental Value 15022000 ESO 39001 $ Economic Value EBITDA 10 45001 Portage Interest Grage $ PCR =0< VIRGIN RESIN Suntainability Sustainability Report Corporate Affairs and Sustainability Committee Communications Management Museum Auditorium Visits Social Media Web Site Media Sustainability Committee Dialogues with Upper Management PetStar Bien Platform 46 Sustainability Report 2020 PETSTAR Source: ECOCE WE SUPPORT GRI 103-1, 103-2, 103-3, 306-1, 306-2, 306-3. LOBAL COL 7,8,9. Earth Charter. I, II. Sustainability Report PETSTAR 47 2020 E>#25Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices Sustainability System Our Sustainability Management System is a comprehensive circular system of permanent continuous improvement that allows us to implement strategies aligned to the most relevant issues for our stakeholders, manage the risks for the company and the potential dangers that our operations may imply for people, translating it into actions that become part of our operating processes considering the International Sustainability Agenda. The system is read from an international framework, taking care to understand in depth and identify how PetStar can incorporate the precepts of that international agenda, which help to configure the PSBM processes while maintaining the integrity of the business. The social, environmental, and economic value generated by our PSBM is reflected in the different awards that we have obtained, that are part of our philosophy of excellence, which in addition to complying with quality standards, endeavors to break into processes that push us to innovate and improves and continues to achieve beyond recycling. #MoreThan Recycling We also take care of generating alliances to enhance social value by working with foundations dedicated to the comprehensive care of girls, boys, and adolescents, providing different services of education, food, medical care; but above all, the development of life skills, empowering girls, and boys to be changemakers. Regarding our environmental value, we have clear objectives with strategies that allow us to go forwards towards the fulfillment of the SDGs; and thus, be able to be part of the solution for some of the challenges that we are facing worldwide such as climate change, the water crisis, the Earth Overshoot Day overdraft, plastic pollution, etc. Within the economic value, we ensure that our operations work under a profitability scheme, making the price of PetStar's recycled resin competitive compared to virgin resin. Through this Sustainability Report, aligned with the Global Reporting Initiative (GRI) methodology and complying with the COP advanced criteria standard, we present our annual results to our stakeholders, in constant dialogue and with our hand firmly on the pulse of the stakeholders themselves. We participate in dialogue with key contributors and our stakeholders, through forums, congresses, webinars, surveys, materiality studies, different platforms and events; allowing us to be part of a global business community through the Global Compact and other organizations and initiatives so that we can once again understand the international agenda and its trends, the calls to action for companies, allowing us to nurture our PSBM by rethinking and redesigning strategies to improve and strengthen to increase the positive impact of the social, environmental and economic value that the model achieves. CERTIFIED cradle to cradle Our recycled PET resin is the first in the world to be certified as Cradle to Cradle". an institute focused on certifying 100% circular products that also meet five categories related to material health, material reutilization, renewable energy, water stewardship and social fairness. ciel 1600 Ciel Fabium 100% PETSTAR EBOCAN Environmental Goals To achieve the strategic objective of being a worldwide reference in the production of recycled food grade PET resin, of higher quality, lower carbon footprint and lower water footprint at a competitive price against virgin resin. At PetStar we develop projects focused on the reduction and mitigation of greenhouse gases, as well as projects aimed at optimizing the consumption and treatment of water to promote its reuse and improve the water footprint. Derived from the health crisis caused by COVID-19, 2020 was a very challenging year in terms of investment in new projects. In PetStar, projects focused on the health of collaborators and Collector Partners were prioritized, the above, together with the impact of projects by external market factors, led us to rethink the commitments and the dates of compliance with the environmental objectives that were in 2020. During 2021, new projects will be re-evaluated to achieve medium- term goals. The progress of each of them is explained below. 48 Sustainability Report 2020 PETSTAR WE SUPPORT GRI 103-1, 103-2, LORAL COM 103-3, 303-1. 7,8,9. Earth Charter. II. 57% Creating value ❘ Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs 41% Neutralize Water Footprint 100% Environmental Goals CO₂ Neutralize Carbon Footprint 64% 75% Paperless Zero Waste Zero Plastic Leakage Sustainability Report 2020 PETSTAR 49 E>#26Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs Carbon footprint CO₂ Performance progress: 100% toward neutralization. PETSTAR CO NEUTRAL 10 NEUTRAL C CARBON 2 FOOTPRINT Creating value Who we are? Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs E> Congruent with our conviction to be part of the solution in mitigating climate change, in 2020 we achieved the objective that we set in 2016, which is the "neutralization of our carbon footprint", verification of the 2020 GHG Inventory by AENOR MEXICO. In order to achieve a neutral carbon footprint, since 2016 different initiatives have been worked, among which the following stand out: Use of wind energy, which represents 66% of the energy used in our processes. Cogeneration of energy, which represents 10% of the energy used. Energy efficiency and smart lighting projects for the collection and recycling process. Installation of 30 solar panels and 150 solar crystals to supply energy to the Auditorium Museum and the PetStar Multipurpose Room. Implementation of transport efficiency projects, endorsed by the “Clean Transportation" recognition granted by the Ministry of Communications and Transportation (SCT) and the Ministry of Environment and Natural Resources (SEMARNAT), as well as the ISO 33: 000 certification. In addition, process improvement projects to increase energy performance levels above the standards. Energy intensity 2017 2018 2019 2020 Green rooftops and PetStar's Greenhouse Committed to being a catalyst of change, we installed two environmentally green roofs with the aim of restoring the habitat, producing oxygen, and absorbing greenhouse gases (CO2), capturing rainwater, reusing it for irrigation and toilets; reduce pollution in the environment through plants belonging to the species of succulents. We also have our own greenhouse where we rehabilitate and reproduce these plants. In October 2020 we were able to add the LEED Platinum Certification granted by The U.S. Green Building Council for the Multipurpose Room for the implementation of sustainable practices. GREEN BUILDING COUNCIL LEED PLATINUM USGBC Currently we also have this level of certification for the Auditorium Museum, being the first museum in Latin America to have this distinction. Both buildings have practices such as rainwater collection and treatment, solar panels and glass, green roof, among other practices that favor the environment. Sustainability 50 Report 2020 Consumo de energía de fuentes Renovables 119,488,746 130,773,070 98,520,260 90,076,280 Energy consumption from non-renewable sources 189,503,576 179,280,506 222,995,004 225,576,074 Total energy consumption 308,992,322 310,053,576 321,515,264 315,652,355 Energy intensity MJ per ton of resin 6,053 6,101 6,208 5,807.53 201-2, 7 AF 12 PETSTAR GRI 305-1, 305-5. AND PRODUCTION QO 13 CLIMATE ACTION 15 CAR 103-1, 15 /盒 GRI 103-2, Report 304-3. 2020 Sustainability PETSTAR 51 E>#27Water footprint Creating value Who we are? Accelerating actions to achieve the SDGs Zero waste | People | Planet | Prosperity | Peace | Partnerships | Appendices Performance progress: 41% toward neutralization. During 2020, our water performance improved by 18% vs. 2017 as shown in the M3 water/TONPCR performance factor. YEAR 2017 2018 2019 2020 Performance Factor 1.615 1.100 1.010 0.955 M3 water/TONPCR Performance progress: 64% toward zero waste goal. The goal of zero waste is so that we can prevent the waste from our different processes from reaching a sanitary landfill, for which we have developed projects for the reuse, recovery, and recycling of process materials. During 2020 we achieved a performance rate of 0.087 tons of waste per ton produced, which represents a 64% decrease in waste VS 2017. The main projects to reduce the water footprint in 2020 were focused on efficiency in water consumption. We will continue working to strengthen our water performance and to be able to neutralize our water footprint in the medium term. Since 2017, we have a water treatment plant for the physical, chemical and biological treatment of all the water used in recycling processes in compliance with NOM-001-SEMARNAT. 52 Report 2020 CLEAN MATER 12 CLIMATE 15 ACTION 14 W WATER Sustainability PETSTAR GRI 301-1, 301-2, 301-3, 303-1, 303-3, 306-1, 306-2, 306-3, 306-4, 306-5. CONCEPT 2020 TON Waste generated 13,109 Reuse (NWR) 3,586 Recycle (paper, scrap, wood, sludge) 2,427 Value (CH-011,229) 971 Energy Valorization (220,223,239) 1,421 Total 8,406 Disposal (Landfill Garbage + Surplus 228) Percent decrease 4,704 64% E> Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs #WORLDWITHOUTWASTE coca-colacompany.com PETSTAR PASA Hecha con tapas de botellas #MundoSinResiduos We will continue working on processes of valorization and increase of efficiency of raw materials and processes to achieve our goal of being a ZERO WASTE company. Use of caps and labels into new beverage crates As part of the projects to value 100% of the PET bottle and its components, the production of black beverage crates for returnable bottles from caps and labels was developed in conjunction with IPASA, a company part of our shareholder Arca Continental (PCR PO). Its use is aligned to the circular economy of the PET container; In addition, it has enormous environmental advantages by having a ZERO water footprint and a zero-carbon footprint vs the use of this virgin material, which would be equal to turning off 553,940 bulbs, also contributing to Coca-Cola's global goal for a #World WithoutWaste. Sustainability Report PETSTAR 53 2020#28Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices Creating value Who we are? Accelerating actions to achieve the SDGS People | Planet | Prosperity | Peace | Partnerships | Appendices Zero leak of plastics Performance progress: 75% toward zero plastic leak goal. Preventing the leakage of plastics from the collection of the bottles to the delivery of food grade pellets is one of our priority environmental objectives, being an action that avoids the loss of pellets, plastic flakes, or any other plastic material so that they do not affect marine ecosystems. During 2020 we received the blue badge from the Zero Pellet Loss Program, gaining the next level of progress in our adherence to the Operation Clean Sweep (OCS) program, placing PetStar as the 1st Mexican company to obtain this badge, during the event organized by the National Association of Plastic Industries (ANIPAC) in 2020. The main actions implemented during 2020 for zero plastic leaks were: Label control in rainwater system Label, bottle, and screw cap leakage in bale area Leak of labels, bottles, and screw caps in compactor Mesh Change in Collection Trucks @peration Clean Sweep Efficient use of paper Performance progress: 57% toward paper reduction goal During 2020, we have continued to promote the concept of efficient use of paper by replacing paper document flows with electronic media. We are at the point where there are processes that can no longer reduce your use of paper, due to the exchange of legal and commercial information with third parties. The use of paper in 2020 was reduced by 57% vs. 2017, as shown in the following graph. >> Kilograms of paper purchased 4,735 3,712 2,348 Total PetStar reduction: 57% # 1 in the world PET is the most recycled plastic in the world. Advantages rPET VS VPET At PetStar, part of the Mexican Coca-Cola Industry, we understand that the future of our business is directly related to the future of our planet; Therefore, we constantly work to increase the competitive advantage to our shareholders in the use of our recycled resin VS the use of virgin resin, significantly reducing the carbon footprint of their products and decoupling them from the use of non-renewable resources. Below is a summary of the life cycle analysis of the production of recycled PET (rPET) and new virgin material (VPET). The results show that the production of rPET pellets has significantly better results for the environment in terms of energy use and other environmental impacts. >> Lifecycle comparison chart of rPET vs. VPET VIRGIN RESIN OTHER RECYCLED RESINS PETSTAR RECYCLED RESIN 61.40 14.80 5.80 MAIN IMPACTS Energy 1,686 -64% (Mj/kg) Carbon footprint 1,704 1,980 2.23 0.91 1,544 1,507 Kg CO2E/Kg -12% Water consumption 1,234 9.89 10.30 777 M3/TONPCR 162 72 -94% 0.95 COMPETITIVE ADVANTAGE OF RECYCLED PETSTAR RESIN VS. VIRGIN RESIN (%) 91% less energy 100% Neutral carbon footprint by 2020 90% less water 54 Report 2020 Blue 13 CLIMATE 14 15 Sustainability ACTION BELOW WATER PETSTAR GRI 103-1, 103-2, 103-3, 301-1, 301-2, 301-3, 304-2, 306-1, 306-2, 306-3. 2017 2018 2019 Central offices Recycling Collection 2020 For more information regarding the life cycle carried out by APR (The Association of Plastic Recyclers), and NAPCOR, the following links are available: https://plasticsrecycling.org/images/library/2018-APR-LCI-report.pdf www.napcor.com/sustainability/life-cycle-analysis AFFORDABLE AND 13 MATE CLEAN ENERGY 15年 GRI 301-1, 301-2, 301-3, 303-3, 305-1, 305-5. Earth Charter. II. Sustainability Report PETSTAR 55 2020 E#29Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices Environmental education In order to promote environmental education and the culture of recycling, we have a visiting program that seeks to inspire others to act sustainably. In 2013, we started a program of visits to our Auditorium Museum, receiving an average of 15,000 people a year. As of 2016, we ventured into the digital field through: Website Virtual tour CO2 calculator. This year, because of the pandemic, we decided to greet our visitors remotely and reach them digitally, carrying our message and commitment to sustainability through digital events. >> CO2 calculator >> Audience 4,587 Users 56 Sustainability Report 2020 >> Virtual events Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs Carbon Foodprint Calculator PETSTAR #GreenLoverChallenge On World Recycling Day, we created the #GreenLoverChallenge campaign, which consisted of launching a series of challenges related to waste separation, water care, energy, among other activities to motivate the population to take an interest in caring for the planet even though we were in the midst of the COVID-19 pandemic. The campaign was carried out on our social networks and had a reach of more than 5 thousand people. Likewise, on May 17, a challenge was organized to promote the correct disposition of the PET container (Empty-Flatten-Re-cap- Dispose) in an inclusive and fun way that had different influencers taking part, mainly on Tik Tok and Instagram. Our community in social networks currently has more than 25 thousand people and our goal for the following year is to take advantage of the digital platforms that have become essential as a result of COVID-19 to build a sustainable community of leaders who, through their talent and commitment, create local initiatives for global solutions. #GreenLover Challenge MUSEUM VISITS VIRTUAL VISITS TOTAL 2,039 10,834 12,873 11% 13% 22% 32% 22% SHAREHOLDERS 5 Active participation AUTHORITIES 4 Active participation 2 Passive participation GLOBAL COMPACT ORGANIZATIONS SCHOOLS 9 Active participation 10 Active participation 5 Active participation 6 Passive participation 5 Passive participation WE SUPPORT 103-2, ORAL COL 4 EDUCATION 11 TABLES 13 15 Earth PETSTAR GRI 103-3, 7,8,9. Charter. II. 304-1. ABEB PETSTAK Cómo ser más sustentable en esta cuarentena Emprendimiento sustentable El planeta necesita de esos proyectos, organízalo y seguro será de mucha ayuda para un futuro. COCA COLA 100 #GreenLover Challenge Día Mundial del Reciclaje World Recycling Day Sustainability Report PETSTAR 57 40 2020#30Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices E> Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs Volunteering for the environment At PetStar we have formed a Central Sustainability Committee to design and implement in a participatory way an agenda that contributes to the fulfillment of the company's sustainability objectives. Through these, the volunteer program is managed, the purpose of which is to collaborate with different civil society organizations, authorities, companies, and institutions in the search for sustainability by reassessing local actions. This year we managed to carry out volunteering despite the difficulties of the pandemic, through our Golntegro platform, where we introduced the following virtual activities: On Recycling Day, we started the campaign “My family moves me, recycling inspires me", where we ask our collaborators to participate together with their families and / or loved ones, telling us how they take care of the environment in their daily lives with a photo, video, or drawing. The publications with the most votes within the Golntegro platform received a surprise gift. PAKETO On World Tree Day we carry out different activities: "Reconnect with nature" We invite collaborators who are working from home, to participate in a guided meditation to thank the trees and reflect on the connection we have with them, through a psychologist. We had the involvement of 50 people. •Reconectate con la naturaleza We carried out a creative contest for the collaborators to participate together with their sons or daughters by creating a tree that would show: "Why trees are so important to the earth and the life of living beings?". We had the participation of 13 people and there were 4 winners. Día del Árbol 2020 Virtual Reforestation - It was done through a search engine called Ecosia that aims to invest 80 to 100% of its profits in international organizations that are dedicated to reforesting where it is most needed. It takes an average of 45 searches in Ecosia to fund the reforestation of a tree. Our PetStar volunteer program, made up of 15 collaborators, carried out a total of 1,578 searches, managing to reforest 35 trees. PETSTAR Con tu apoyo se plantaron 35 ÁRBOLES ¡Agradecemos tu entusiasmo por siempre dar un poco más para lograr un mundo mejor! Padel Jabal 3030 58 Sustainability Report 2020 PETSTAR GRI HD 103-1, 103-2. WE SUPPORT 7,8,9. 典 9 an Gracias por ser Voluntario Petstar en la REFORESTACIÓN VIRTUAL voluntario >> Festivity WORLD RECYCLING DAY TREE DAY TOTAL 10 78 88 PetStar volunteers Sustainability Report 2020 PETSTAR 59#3160 60 AFFORDABLE AND CLEAN ENERGY DECENT WORK AND ECONOMIC GROWTH M INDUSTRY, INNOVATION AND INFRASTRUCTURE 10 REDUCED INEQUALITIES SUSTAINABLE CIT A We are determined to ensure that all human beings can enjoy a full and prosperous life, and that economic, social and technological progress occurs in harmony with nature. PROSPERITY 5) United Nations (2015) "Resolution approved by the General Assembly on September 25, 2015 "(A/RES/70/1) Creating value | Who we are? Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs Top achievements Through PICM we were able to influence our supply chain that includes approximately 1,451 micro, small and medium collection points throughout the Mexican Republic More than 11 million pesos for social investment We improve the development and quality of life of more than 900 boys and girls, children of waste pickers and collectors from a Children's Rights perspective through the CEDIC, Mayama and the San Luis Potosi Children's Club. Through our webinars in conjunction with the Global Compact, "Accelerating Actions for a more sustainable life" we have managed to reach more than 400 viewers. Circular economy The world is going through not only a health crisis, but an environmental crisis in which the circular economy has gained relevance in the last 5 years, opening a world of opportunities to rethink and redesign the way we do things through a change of perspective on how our economy works, designing products that can be 'made to be made again'. In this way, the circular economy promotes that a product never becomes waste, but forms part of the next production chain, having benefits not only environmental, but also social and economic. Our PetStar Sustainable Business Model (PSBM) is based on this economy of PET containers, which can be infinitely converted into new bottles, with a zero-carbon footprint, efficient use of water and multiple social benefits for waste pickers and collectors and their families. CLEANER 7AFFORDABLE AND AND SANITATION 13 MA ACTION α cielel ciel Ciel Fiel Sustainability Report 2020 (Cle PETSTAR 19 61 E>#3262 62 Sustainability Report 2020 Collector Partner 102-2, 103-1, PETSTAR GRI 6. 103-2, 103-3. Socio Acoplador 1 POVERTY DECENT WORK AND ECONOMIC GROWTH 10 INEQUALITIES Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices E> Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs PetStar Inclusive Collection Model The circular economy of PET containers begins when the consumer correctly disposes of his bottle through four steps "Empty-Flatten-Re-Cap-Dispose", this simple action has enormous environmental value, making it possible to start the recycling chain. At PetStar we recognize the importance of thousands of people, women and men who obtain income from the recovery of recoverable waste, known as waste pickers or collectors, for this reason we conduct ourselves from a perspective in line with human rights that contributes to making this important work visible and leaves no one behind. Through the PetStar Inclusive Collection Model (PICM), we were able to influence our supply chain that includes approximately 1,451 micro, small and medium collection points throughout the Mexican Republic, leading inclusion initiatives that give them a formal role within of the supply chain and promoting the social mobility of waste pickers and collectors through training and advise. Collection process Once the PET bottles are collected by us, they are sent to our eight collection plants located in different parts of the Mexican Republic in the cities of Monterrey, Guadalajara, San Luis Potosi, Merida, Acapulco, Queretaro, Ecatepec, and Toluca, where a process of sorting and selection of the most suitable PET bottles begins to send them to the Recycling Plant. Recycling process In Toluca, State of Mexico, there is our recycling plant, the largest in the world within the food grade category, capable of converting the collected bottles into recycled food grade PET resin. HOW TO DISPOSE PLASTIC BOTTLES PROPERLY 1 EMPTY 2 FLATTEN 3 RE-CAP 4 DISPOSE (65) DON'T RINSE • DON'T INTRODUCE OBJECTS . 11 STAMARE CITES AND COMMUNES Earth Charter. I, IV. 12 ESMABLE 12 AND PRODUCTION со 115 Sustainability Report PETSTAR 89 63 2020#33Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices E> Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs Clients Process Our food grade recycled resin is sent to our shareholders part of the Mexican Coca-Cola Industry (MCCI) who oversee manufacturing new bottles with recycled content, currently MCCI bottles have an average of 30% recycled content and 100% in millions of packages. The goals of #WorldWithoutWaste creates certainty from the collection chain to recycling allowing PET containers to have life again and again. Our direct clients are: Recycled Food Grade Resin: 7 bottlers from the Mexican Coca-Cola Industry who are in turn Shareholders of PetStar. By-products: 20 national and foreign clients. Our indirect customer is the final consumer of the products bottled with our recycled resin, who through the correct disposal of their containers allow the virtuous cycle of circular economy to continue. Relationship with customers Our relationship with customers is extensively a process of customer care and service, which aims to: “Know the performance of the product in the customer process", including logistics, transportation, asset security and product unloading at their facilities to guarantee compliance with product quality and safety commitments; in addition to identifying areas of opportunity, concerns, new requirements, and suggestions that guide the continuous improvement and innovation of our processes. We have a common process of visiting our customers (transformers) scheduled annually at our facilities to verify the performance of the product. The information taken from the visits are shared with all Operational Managers as to implement actions to solve the problem or opportunity identified. Each client is visited at least twice a year. Customer satisfaction evaluation Through this process of compliance with the transport specifications of the finished product in each of the deliveries is systematically measured. Through a questionnaire, customer satisfaction, product quality and safety, customer-supplier communication, and follow-up to the solution of complaints and claims are evaluated annually. The results obtained are analyzed to generate corrective and / or preventive actions when opportunities are identified. The information generated in this process is shared with the General Management, who analyzes it together with the Technical Committee of the Board of Administration. ON Cradle to Cradle PetStar, the largest food grade PET recycling plant in the world and part of the Coca- Cola Mexican Industry, achieved the Bronze level of Cradle to Cradle certification for its food grade PET recycled resin (PetStar RebornⓇ), being the first PET recycled resin in the world Cradle to Cradle Certified™, reafirming its commitment with the sustainability. PetStar's Sustainable Business Model embeds the C2CTM approach in its operations in line with the Circular Economy, generating social, environmental and economic values in congruence with the ve categories it promotes: A Material Healt Material Reutilization Renewable Energy Water Stewardship Social Fariness Water stewardship: The water used during processing is 100% treated on site at a high-tech Wastewater Treatment Plant, which assures that released water is safe for humans and the environment. Social fairness: Indirectly it provides certainty to 24,000 waste pickers and collectors through inclusion initiatives that offer them a formal role in the supply chain through the PICM. This Model also promotes and respects the rights of boys and girls through a variety of social programs, including the CEDIC, located in Mexico City and Mayama located in Guadalajara City, benefitting more than 900 girls and boys, that are children of pickers and collectors, providing health, food and education programs and helping them to develop skills for life. CERTIFIED O Material health: PetStar RebornⓇ is free of the presence of any chemicals from the Cradle to Cradle Certified™ "Banned List”, due to the purification process applied with high end technology, continuous improvement, innovation and process efficiency, endorsed by FDA non-objection letter, MBDC Material Health Assessment, ISO 9001 and ISO 22000. Material reutilization: PetStar RebornⓇ offers a clear example of a Circular Economy, thanks to its integrated process, beginning with bottle collection to the recycling of PET bottles producing recycled food grade resin, which is reused by the Coca-Cola Mexican Bottlers for manufacturing new PET bottles with up to 100% recycled content. Renewable energy: PetStar RebornⓇ is manufactured using 66% of renewable energy provided by the combination of wind power, solar panels and cogeneration. ciel ciel 600m cradle to cradle BRONZE 100% PETSTAR® REBOORN 64 Report 2020 Sustainability PETSTAR GRI 102-6. GRI 102-2, 201-2, 12 SE 12 AND PRODUCTION 305-1, 305-5, 416-1. Sustainability Report 2020 PETSTAR 65 55 E>#34Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices E> Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs 2019 2020 Suppliers For us, the development of our suppliers is very important, so we evaluate compliance with our principles through audits and work programs in accordance with the areas of opportunity identified in the audits themselves from the application of various Standards to our supply chain value, for example: ISO 9001, ISO 22000, OHSAS 18001, ISO 14001, and ISO 50001. Regarding the prevention of conflicts of interest between suppliers and collaborators, there are institutional regulations that oblige all suppliers not to enter into financial or other relationships with company collaborators, as well as to declare any matter that could be considered a current or potential conflict of interest. Financial Indicators EBITDA7 2018 218.3 17.4 mdp mdp >> Suppliers (Recycling plant) 2018 2019 2020 National 1,492 1,291 1,315 International 28 19 40 TOTAL 1,520 1,310 1,355 14% MDP: MILLIONS OF PESOS, FOR ITS INITIALS IN SPANISH. Accounting practices 1.2% 35.9 mdp 2.5% Our accounting is recorded on a daily basis under the regulatory framework of the Financial Reporting Standards, carrying out monthly financial report to better control operations, allowing us to produce reviews and reconciliations, helping to facilitate the end of the annual tax year. Every time a monthly financial report is in progress, the period of that statement is frozen in order to record the operations that we carry out within that time, on a monthly basis Financial Statements are prepared so that they are a transparent reflection of the economic and financial situation of the company to be approved by the management of the Company. Tax approach As of today, we do not have tax credits or pending tax matters. 7) EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION. Social investment CEDIC Cedric Chimalhuacan 400 children supported Amount invested: 5 million pesos In order to improve the living conditions of children of waste pickers and collectors, we work as a team with the Community Integral Development Center (known in Spanish for its initials as CEDIC). Through a joint action model, CEDIC influences the comprehensive development of both low-income girls and boys and adolescents in the community of Chimalhuacan and Nezahualcoyotl, State of Mexico, providing them with non-formal education, health, and nutrition to improve their quality of life. This project is carried out in partnership with: Institutional Alliance PETSTAR Supports: HOPE comedor Ted Santa Maria Sabiduria Aud worldwide Dibujando un Mañana Nutrition Education Medical Care FUNDACIÓN Dibujando Un Mañana: It is a 2nd level Foundation that intertwines other foundations and actors in favor of children and adolescents in Mexico. They are responsible for coordinating the efforts of different organizations that provide the services offered by the CEDIC. Comedor Santa María: Recognized civil association, dedicated to offering a nutrition and education program to low-income boys and girls, and thus meeting their primary need: food. Due to our commitment to SDG 2: Zero Hunger, we maintain a close relationship with this institution, and we provide them with an annual donation of more than 3 million pesos to be able to serve more than 400 children and adolescents from 4 months to 16 years living in conditions of extreme poverty, providing one meal a day, which contributes at least 65% of the necessary daily intake. During this pandemic, the dining room was closed of its facilities to avoid infections, but they did not cease all activity to provide much needed support for the children and adolescents. In the first phase, 954 food parcels were delivered to the families served by the CEDIC. Later, in a second phase, it was decided to deliver food prepared with complementary products such as milk, fruit, beans, rice, gelatin, etc. for the children and adolescents. In total, 74,602 prepared meals were generated, serving 395 people. Tesoros de la Sabiduría: Non-profit foundation whose purpose is to support children and adolescents who are in vulnerable conditions. They are in charge of the educational and training part through an innovative model called the "World of Knowledge". HOPE Worldwide Mexico: International humanitarian cooperation agency with Special Consultative Status within the Economic and Social Council of the United Nations Organization. They develop programs so that the girls and boys of the world have better conditions in their quality of life. They support children, women, and the elderly, for their medical, dental, health education and recreational care; they provide medical care to the CEDIC child population and to the community in general. Due to the health contingency, these institutions made adjustments in activities and operations to continue providing support in a safe and accessible way, which consisted of accompaniment by phone and virtual, adaptation of spaces, training, health care, take away food, remote education, among others. 66 Sustainability Report 2020 PETSTAR GRI 102-7, 102-9, 102-45, 103-1, 103-2, 103-3, 201-1, 203-2, 204-1,207-1,207-2. 201-1, GRI 203-1, Earth Charter. EDUCATION IV. SSS 203-2. Sustainability Report PETSTAR 67 2020#353 68 Sustainability Report 2020 PETSTAR eating value Who we are? | Accelerating actions to achieve the SDGs Mayama Mayama | People | Planet | Prosperity | Peace | Partnerships | Appendices 429 children supported Amount invested: $3,360,000 E> Club de Niños y Niñas San Luis Potosí e's ⚫MÉXICO. CLUB DE NIÑOS Y NIÑAS SAN LUIS POTOSÍ BOYS AND GIRLS CLUBⓇ 84 children supported Amount invested: $200,000 Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices Ya soy Niña Mayama Sacal to the D Gracias PETSTAR Through our alliance with Mayama, we seek to expand the social impact of the CEDIC model in other regions where PetStar has a presence. Mayama is a learning center that transforms the lives of children and families in a situation of waste pickers, marginalization, and violence in the metropolitan area of Guadalajara. In 2020, due to the health contingency due to COVID19, adjustments were made in the form of care for girls, boys and their families, face-to-face operations were suspended, and they were adapted to a remote modality, using cell phones and in some cases through the use of video calls, an action plan was coordinated and carried out based on 4 goals: 1. Zero hunger 2. Zero Infected 3. Zero violence 4. Peace and Resilience The Boys and Girls Club is an association of the United States with more than 150 years of experience and proven results of: Reduction of crime, violence, and gang activity Reduced risk of addiction Better school average and increased number of graduates They raise the standard of living of the community. Reduction in the frequency of sexual abuse and adolescent pregnancy. Currently in Mexico there are 11 clubs: Monterrey, Nogales, Navojoa, Hidalgo, Rosarito, Estado de México, 3 in Tijuana, and 2 in San Luis Potosi, which is where we provide support and have benefited 84 boys and girls from 4 to 14 years old. Personnel have been retained. There are 84 registered children between the ages of 4 and 14, direct beneficiaries, of which 15 are related are sons and daughters of fathers and mothers dedicated to picking or recovering waste. 60 Families benefited 240 Indirect beneficiaries Weekly 3 general and 8 focused activities are offered Investment: $ 200,000 from August to December. Despite the health emergency, they managed to carry out all the activities virtually and maintain interest in the club's activities, having an excellent response to the different events such as Day of the Dead and Christmas nativity which continued despite the prevailing situation and shared evidence of the success of these events using social media especially WhatsApp where many families have set up groups. The children have also expressed the need to return to the club and participate face to face. This could have not been achieved without the support and dedication of the children's parents, this has given the children an opportunity to occupy their free time in activities that promote their integral development. What has been achieved by being in permanent contact with them and their families. SEBASTIAN gaños Sustainability Report PETSTAR 69 2020#36Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices WE SUPPORT GLOBA. UN COMPACT We are a company adhered to the United Nations Global Compact. PETSTAR WE SUPPORT 1,2,3, 5,6. OSTATN ANDRASTRUCTURE 10 RECE INEQUALITIES Alliance with the Global Compact Mexico Network Since 2016, we have adhered to the United Nations Global Compact Mexico Network, a voluntary initiative based on the commitment of the general directors of the organizations that signed the United Nations Global Compact, to implement universal principles of sustainability and to take actions to accelerate the path to the Sustainable Development Goals. In 2018, we assumed a role as members of the Council of the Global Compact Network in Mexico. As part of our commitment and active participation in the Global Compact, we have become involved as signatories in the different international initiatives to advance the ambitions of the 2030 Agenda for Sustainable Development. Young Innovators for the SDGs LIN GLOBAL COMPACT WE SUPPORT YOUNG SDG INNOVATORS Young SDG Innovators Program (YSIP) is a development program, designed to accelerate business innovation to achieve the Sustainable Development Goals (SDGs). This program activates future business leaders and challenges them to rethink traditional business models and open new business opportunities; designing a new idea, product, service, or business model that solves a global problem with impact, with the aim of accelerating the achievement of the SDGs. The main objectives are: Connect with young entrepreneurial professionals from Mexico and around the world to take advantage of the Sustainable Development Goals as a catalyst for the development of new products and services relevant to their business. Collaborate with thought leaders on a series of team exercises and interactive learning opportunities with real-world challenges, mentoring, and coaching. Develop organizational learning skills, so that collaborators of different functions can develop innovative solutions to achieve the Sustainable Development Goals through new technologies, initiatives, and business models. Through this exercise we managed to raise awareness about the importance of being participants and providing solutions for a better world. 11 ARE OFTE 17 PARTNERSHIPS 17 FOR THE GALS Earth AND COMMINTES AB Charter. I, III. E> Target Gender Equality Target Gender Equality is a global impact initiative that supports companies in setting and meeting ambitious corporate goals for women's representation and leadership. Scaling up the impact of the companies' contribution to Goal 5.5 of SDG 5, which requires the full and effective participation of women and equal opportunities in leadership, including in economic life; and implementing the Principles of Women's Empowerment. With this program we will be able to establish ambitious business objectives in terms of gender equality, we will know our progress and performance through the "Gender Gap Analysis Tool of the Principles of Empowerment of Women", we will participate in specific learning opportunities for the In the context of our country, we will be part of the Global Exchange Workshop during the Commission on the Status of Women in March of each year, among other strategies that will help us improve our performance and achieve our objectives UN GLOBALE COMPA MPACT TARGET GENDER EQUALITY WE SUPPORT SDG Ambition Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs It is an accelerator initiative that aims to challenge and support the participating companies of the United Nations Global Compact to set ambitious corporate goals and accelerate the integration of the 17 Sustainable Development Goals (SDGs) into core business management. SDG Ambition enables companies to go beyond incremental progress and progressive transformative change, unlocking business value, creating business resilience, and enabling long- term growth. The need for SDG Ambition is clear. The world is not making progress towards the SDGs at the necessary pace and scale. While it is still possible to shift the world to a 1.5 ° C trajectory and achieve the SDGs by 2030, urgent, scalable, and multi-stakeholder action will be needed to dramatically accelerate progress. Led by the United Nations Global Compact in partnership with SAP and Accenture, SDG Ambition will empower and equip participating UN Global Compact companies to develop and implement innovative business strategies that significantly increase their positive impact on the SDGs. Through Global Compact Local Networks in more than 60 countries, participating companies will assess current performance, identify risk areas, discover new opportunities in business units and functions, and take ambitious business steps to achieve the SDGs. UN GLOBALE OMPACT WE SUPPORT SDG AMBITION Working Groups with CCE and PM (Sustainable Cities and Circular Economy) Mexico is one of the signatory countries of the 2030 Agenda. In recent years, multiple efforts have been made to achieve its implementation at the federal, state, and municipal levels. The participation of the private sector is essential since it is an engine of productivity, inclusive economic growth, and job creation, as well as having the necessary resources to mobilize actions aimed at sustainable development. That is why, in addition to the projects and initiatives with which it is committed to the fulfillment of the SDGs, on May 27, 2019 a collaboration agreement was signed between the Office of the President, Global Compact Mexico and the Business Coordinating Council (CCE), to promote concrete actions from the private sector that have a strategic impact on the 2030 Agenda. GRUPOS DE TRABAJO CCE CONEJO AGENDA 2030 Pacto Global MÉXICO Red México PR CIUDADES SOSTENIBLES 70 Sustainability Report 2020 Sustainability Report PETSTAR 71 2020#37Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices E> Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs Based on this collaboration agreement, eleven specific SDG Pioneers (finalist) working groups have been formed, called 2030 Agenda Working Groups: Climate change O Sustainable cities O Diversity and inclusion Circular economy Ecosystems and Biodiversity Quality education Energy Poverty O Resilience Decent work and economic growth Transparency Thanks to our commitment and leadership, we were selected to co-lead the Working Group (WG) "Sustainable Cities", together with the company Kaluz, in the same way we are participating members of the WG "Circular Economy" as of 2020. KALUZ We are proud to be part of the Mexican Global Compact Network, but also to have key actors who are recognized as Mexican leaders in the promotion of the 17 Sustainable Development Goals (SDGs), creating mobility towards business sustainability and inspiring others to act sustainably. Principles for a Sustainable Ocean As part of our commitment to the environment, in late 2019, we began endorsing the United Nations Global Compact Principles for a Sustainable Ocean - a framework for responsible ocean business practices across sectors and geographies. We are committed to ensuring that ocean-related risk and opportunity materials are integrated into corporate strategy, risk More information: https://www.pactomundial.org.mx/ management and reporting. We, as signatories to these finalistas-sdg-pioneers-2020-mexico-anterior/ LIN GLOBAL MPACT WE SUPPORT SDG PIONEERS MEXICO #SDGpioneers Pacto Global Red México CARLOS MENDIETA FINALISTA MARTHA HERRERA Director Global de Impacto Social GANADORA 2020 Global Compact Network Mexico SDG Pioneer ALEJANDRA RIVERO FINALISTA principles, recognize the urgency and importance on a global scale of a healthy ocean, and will take steps to promote the well-being of the ocean for current and future generations. The Principles for a Sustainable Ocean are divided into 3 categories: 1. Ocean health and productivity 2. Governance and commitment 3. Data and transparency As part of the actions that have been carried out within this initiative, a report called "Ocean Stewardship 2030" was produced, which shows a roadmap on how industries related to the oceans can ensure a healthy ocean by 2030. We as PetStar were OCEAN STEWARDSHIP 2030 included as a global reference in section 4: End waste entering the ocean. This document was released on June 2,2020. Human Rights and Business Initiative The Global Compact Mexico Network Business and Human Rights Initiative is a project in collaboration with the Institute for Business and Human Rights of the University of Monterrey (UDEM for its initials in Spanish), the Office of the United Nations High Commissioner for Human Rights (OHCHR), the Organization for Economic Cooperation and Development (OECD) and the International Labor Organization (ILO). It is an accelerating initiative that seeks to facilitate the inclusion of the human rights perspective in company operations, which we have been part of since September 2020. J. CHRCH SCHOL IDHE INICIATIVA DE DERECHOS HUMANOS YEMPRESAS PETSTAR Pacto Global Red México Webinars in alliance with the Global Compact On October 7, 2020, during the launch of the 2030 Agenda Working Groups, the United Nations Global Compact Mexico Network called for accelerating actions in favor of the Sustainable Development Goals (SDG), since the proposed goals they are not advancing at the necessary speed and scales and even, derived from the COVID-19 pandemic, compliance with the 2030 Agenda is being delayed. In alliance with United Nations Global Compact Mexico Network, we organized a cycle of six webinars under the name "Accelerating Actions for a more sustainable life" with the aim of helping companies and our country overcome the negative impacts associated with the health crisis due to COVID 19 moving towards sustainable business models, deepening their knowledge of the international agenda and accelerating actions to comply with the SDGs. From the viewpoint of the panelists in this cycle of Webinars and PetStar, the fulfillment of this global agenda is not a United Nations issue, it is everyone's issue, and the decisions we make today will be decisive for our future as humanity. Session 1: The road to the Circular Economy - September 30 Session 2: SDG Ambition - October 22 Session 3: Sustainable Financing - November 26 Session 4: The role of companies in the face of climate change - December 10. GRUPOS PETSTAR Pacto Global Red México DE TRABAJO AGENDA 2030 Te invitan al Ciclo de Webinars: SDG Ambition Acelerando Acciones por una Vida Sustentable CIUDADES SOSTENIBLES 72 Sustainability Report 2020 14 PETSTAR Contacto: [email protected] Coca Cola Annu 50 KAWA MÉXICO O MÉXICO A 11000 PUISTAR Sustainability Report 2020 PETSTAR 73 E>#38PEACE, JUSTICE 16 AND STRONG INSTITUTIONS 74 Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs Guiding principles PEISTA PEACE PETSTAR 220 ENVASES DE PET We are determined to foster peaceful, just, and inclusive societies that are free from fear and violence. There can be no sustainable development without peace, and no peace without sustainable development³. Top achievements We joined the Alliance for Integrity, the only global initiative that empowers companies to collectively fight corruption through practical solutions to strengthen the compliance capabilities of companies and their supply chains. Through our Working Childhood Free Supply Policy, we seek to promote the rights of girls and boys avoiding their participation in the recovery of PET containers. During 2020, we consolidated the General Human Rights Policy, in which we declared our commitments in the matter. Complaints about non-compliance with this policy and our code of ethics are addressed through the corporate mechanism of: [email protected] To maintain a relationship of respect and trust, we abide by The Coca- Cola Company's Guiding Principles for Suppliers. Based on the eight Fundamental Conventions of the International Labor Organization (ILO), these principles guide its way of acting on the following main issues: Freedom of association and collective bargaining agreements. Prohibition of child labor. Prohibition of forced labor and labor abuse. Elimination of discrimination. Hours of work and wages. Provide a safe and healthy workplace. Protect the environment. Business integrity. Claim procedure and resources for workers. Administration systems. 8) United Nations (2015) "Resolution approved by the General Assembly on September 25, 2015 "(A/RES/70/1) WE SUPPORT GRI 102-16, 102-17, 103-1, LOBAL CO 103-2, 103-3. 1,2,4, 5, 6, 10. DECENT WORK AND ECONOMIC GROWTH 10 REDUCED 12 POWE INE PALITIES AND PRODUCTION H QO Earth Charter. IV. Sustainability Report PETSTAR 75 2020#3976 76 Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices E> Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs Human Rights Protocol Together with our shareholders, part of the Mexican Coca-Cola Industry, we recognize that respect for people is a fundamental value, which is why we align our operations with the Universal Declaration of Human Rights, as well as to national legislation on labor matters and on applicable Human Rights. Also being a company that is a member of the United Nations Global Compact, we seek to be helpful in aligning our strategies and operations with the 10 Principles on human rights, labor, environmental and anti-corruption standards that facilitate compliance with the Sustainable Development Goals for Mexico. Derived from the foregoing considerations, at PetStar we declare the following commitments regarding Human Rights: 1. Comply with all applicable Mexican laws and respect internationally recognized human rights, in all places where it operates. 2. To promote the awareness of collaborators, Collector Partners and waste pickers in matters related to human rights and PetStar performance values. 3. Strongly reject any practice of violence and discrimination and act in this regard. 4. Assess current and potential human rights risks and their impact on our operations. 5. Adopt adequate measures for the prevention and, when appropriate, the attention of adverse impacts on human rights. 6. Modify internal processes and regulations and adopt the necessary programs to improve the prevention of human rights violations. 7. Address all human rights complaints that are presented through the corporate mechanism [email protected] and assume the burden of proof to demonstrate the situations indicated. 8. Continue participating in international and national initiatives that promote the advancement of human rights. 9. Encourage the companies and individuals that collaborate with PetStar to assume the principles of action of this policy in matters of human rights, including suppliers, Collector Partners, investors, collaborators and clients. 10. Report transparently to collaborators and shareholders about our efforts in this area. Supply Policy Free of Child Labor At PetStar we promote and respect the rights of girls and boys contained in the Convention on the Rights of the Child approved in 1989 and currently supported by 192 countries including Mexico-. In the same way, we seek to eradicate working children in the recovery of PET containers through an internal policy and towards our suppliers that promote the best interests of children. In collaboration with a working group, we produced a basic manual on the rights of the child called "From the Rights of the Child we build Citizenship". Various topics can be found in this manual, for example: human rights, child citizenship and child participation. Thanks to this manual, girls and boys can know their rights and reinforce their knowledge through a workbook that is included in the manual; so that girls, boys, and adolescents are significantly more protected and have a better quality of life. Supply Policy Free of Child Labor PetStar has assumed the commitment of ZERO TOLERANCE of Child Labor throughout its supply chain and verifies compliance with minimum working age provisions. Ethical conduct / regulatory compliance and anti-corruption Code of Ethics and Conduct Our collaborators are representatives and ambassadors of this great company every day, therefore our behavior with stakeholders must always adhere to the Code of Ethics. The Code of Ethics and Conduct is the guide to the organizational values that indicates how we must act in different relationships with our audiences to fulfill the commitment to carry out activities with honesty, integrity, and transparency, as well as with respect for human rights and legitimate interests of all people and organizations with which we have a relationship. The Code of Ethics and Conduct was created to ensure compliance with relevant law, practices, and standards in order to act in the best interests of the company, as well as to reject any personal preference or advantage. To guarantee ethical and lawful conduct, we offer an induction course to new staff, in addition to the Living the Values workshop. In the same way, it is necessary that all collaborators sign the letter of declaration of the collaborator of current or potential conflict of interest. 9) THE 10 PRINCIPLES OF THE GLOBAL COMPACT, AVAILABLE HTTPS://WWW.UNGLOBALCOMPACT.ORG/WHAT-IS-GC/MISSION/PRINCIPLES Sustainability Report PETSTAR GRI 102-16, 103-1, 103-2, 103-3. 2020 GRI 102-16, 102-25, 103-1, 103-2, 103-3, 205-1, 205-2, 412-1, 5 GENBER 16 PEACE JUSTICE 1,2,4, EQUALITY AND STRONG Earth 5, 10. Charter. III, IV. 412-2, 412-3. Sustainability Report PETSTAR 77 2020#4078 Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices E> Conduct Guide to Live the Values Non-compliance Transparency Mailbox Through the Program: Living the Values integrated by the work and participation of all the collaborators, specific behaviors were defined for the experience of our values. In its implementation, awareness mechanisms were established on the importance of living them, as well as a permanent recognition program that generates productive and highly satisfactory work environments. To support the dissemination of our ethical guidelines, we have an internal document called "Conduct Guide for Living the Values", in which the collaborator is invited to reflect on the importance and significance of living our values, inside and outside the company. >> Delivery of information on Living Values in 2020 In order to ensure adequate and correct compliance with our Code of Conduct and Ethics, we have a reporting mechanism called the Transparency Mailbox, which consists of an email address ([email protected]) where collaborators, clients, suppliers and the community in general, can report non-compliance or lack of experience of the values stated in the codes already mentioned. The Non-compliance Transparency Mailbox is a safe and confidential channel in which all complaints received are attended to, with detailed monitoring and the user can be informed of their progress until the final resolution. To ensure a healthy environment and promote complaints about any deviation, we maintain a permanent internal communication campaign with messages alluding to living our values as well as compliance with the codes. All information accumulated in the mailbox is analyzed directly by the General Management and Human Capital, who make the decisions that are pertinent to the case. Through this channel, any complaint can be made in a completely secure, anonymous, and confidential way. For this purpose, an Evaluation and Monitoring Committee has been formed, which is composed of the following: Permanent evaluation members: Managing Director Alliance for Integrity Aligned with our PSBM objectives, this year we joined the Alliance for Integrity to promote and defend human rights against corruption and increase integrity awareness so that more companies and organizations adopt this objective through the exchange of experiences local and global. We are part of a global network of representatives from a wide variety of industries, sectors, and regions to discuss their experiences with other experts and inspire more companies to join and overcome the great challenge of fighting corruption. Alliance for Integrity is the only global initiative empowering companies to collectively fight corruption through practical solutions to strengthen the compliance capabilities of companies and their supply chains. With this initiative we endorse our ethical commitment towards collaborators, suppliers, Collector Partners, and communities with which we interact. LOCATION # OF COLLABORATORS Director of Human Capital CP Acapulco 11 CP Xalostoc 56 CP San Luis Potosi 40 Members related by evaluation request: [email protected] CP Queretaro 67 Director of Administration and Finance CP Monterrey 63 Collection Director YEAR # OF REPORTED CASES RESOLVED CASES PENDING TO RESOLVE CP Toluca 20 Director of Recycling 2020 11 11 0 CP Merida 16 Director of Sustainability 2019 16 16 0 CP Guadalajara Central Office 38 2018 19 19 0 6 Recycling Plant 70 TOTAL 387 102-16, 102-17, 103-1, Sustainability Report PETSTAR GRI 103-2, 103-3, 102-16, 102-17, 406-1, 413-1. 2020 WE SUPPORT LOBAL COM 1,2,4, GENDER 5 Y 5, 10. 16 PLACE AND STRONG INSTITUTIONS DECENT WORK AND ECONCH GROWTH 10 REDUCED INFOSALITIES 12 RESPO Σ Alliance for Integrity 16 PEAGE, JASTICE AND STRONG AND PRODUCTION Earth QO Charter. III. WHAT WOULD YOU DO? Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices ce rity Alliance for Integrity Sustainability Report PETSTAR 79 2020 E#41PARTNERSHIPS 17 FOR THE GOALS 80 PETSTAR We are determined to mobilize the means necessary to implement the 2030 Agenda through a revitalized global partnership for Sustainable Development, based on a spirit of greater global solidarity and focusing particularly on the needs of the poorest and most vulnerable, with the collaboration of all countries, all stakeholders, and all people. PARTNERSHIPS Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs < Top achievements We were able to neutralize our carbon footprint by 2020: thanks to our projects to reduce our emissions and alliances, supporting actions in favor of Nevado de Toluca through the H. Ayuntamiento de Toluca. This year our alliance with Club de Niños y Niñas San Luis Potosí was consolidated, proudly forming part of its employer council. At the end of 2020, we became members of ARISE, the Private Sector Alliance for Disaster Resilient Societies. The links between the Sustainable Development Goals and their integrated nature are of crucial importance to fulfilling the purpose of the new Agenda. If we achieve what we aspire to in each and every aspect of the 2030 Agenda, the living conditions of all people will significantly improve and our world will become a better place. 10 Earth Charter COVID 19 Pandemic." This document was generated collaboratively among various members of the Mexican Network and consulted with a wide variety of people who promote the values and principles of the Earth Charter in Mexico. This document can serve as a guide for decision makers and, in general, for all people who seek guidance for their actions to face the situation generated by the COVID 19 pandemic. In 2014 we signed an agreement to adhere to the Earth Charter, a declaration of fundamental ethical principles ARISE for the construction of a just, sustainable, and peaceful global society. The text of the Earth Charter consists of the four pillars: Respect and Care for the Community of Life, Ecological Integrity, Social and Economic Justice; and Democracy, Nonviolence and Peace. And it ends with The Way Forward. The Mexican Network of the Earth Charter released on July 30 the document: "The Earth Charter as an ethical framework to respond responsibly to the LA CARTA DE LA TIERRA arise SECTION ALLIANCE FOR DEDA SEDE RESENT SOORTES This year we joined ARISE, the Private Sector Alliance for Disaster Resilient Societies, a network of private sector entities led by the United Nations Office for Disaster Risk Reduction (UNDRR), which oversees the implementation of the Sendai Framework for Disaster Risk Reduction 2015-2030. This initiative is also responsible for supporting countries in their implementation, monitoring and sharing what works to reduce existing risk and prevent the creation of a new risk. Considering that the effective identification and management of risks is a key element for our management and for the achievement of local and global goals, at PetStar we decided to commit ourselves to supporting and implementing the Sendai Framework, aligned with the 2030 Agenda and its Sustainable Development Goals (SDG), the Paris Climate Agreement, the New Urban Agenda, and the Agenda for Humanity. Climate and social risks are currently the variables that put humanity in crisis and at PetStar we are determined to contribute to eradicating them. CLEAN WATER 11 TANANE OS AND SANITATION AND COMMINETES 14 WATER 16 PEACE JUSTICE AND STRONG GRI 102-12, INSTITUTIONS 102-13. 10) United Nations (2015) "Resolution approved by the General Assembly on September 25, 2015 "(A/RES/70/1) Sustainability Report PETSTAR 81 2020#4282 Memberships and associations different We endorse our leadership before organizations of civil society and the plastics industry with which we have associated in some cases as members of the council and where we have a strategic influence. Through these we promote sustainability and the principles of the PetStar Sustainable Business Model, the SDGS, the circular economy, and the PetStar Inclusive Collection Model. We work closely with the most important international sustainability initiatives. Council members With the aim of strategically influencing key issues; As well as endorsing the leadership of PetStar before different organizations of society and the Plastic Industry, we participate as a Board Member in: The National Association of Plastic Industries (ANIPAC for its initials in Spanish) The Association of Plastic Recyclers (APR) Council of Graduates of the Faculty of Engineering of the Anahuac University Fundación Tláloc Mayama Nevado de Toluca, flora and fauna protection area UN Global Compact Mexico Network 17 PARTNERSHIPS Sustainability FOR THE GOALS Report 2020 PETSTAR Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices Creating value Who we are? Accelerating actions to achieve the SDGS People | Planet | Prosperity | Peace | Partnerships | Appendices WE SUPPORT Adherences CLAI SUSTAINABLE DEVELOPMENT GOALS Earth Charter. INSTITUTO NACIONAL PARA LA EDUCACIÓN DE LOS ADULTOS Escuelas que intel Universities Consejo de Egresados UNIVERSIDAD BEAAMERKANA CUADOR MEXIC UAEM EGADE Business School Tecnologico de Monterrey de la facultad de Ingenieria Muso Auditona PETSTAR Highlighted events During 2020 we have continued our work of being Among the events that stand out are: a benchmark company in sustainability, circular economy, and inclusive recycling. The new normal opened the doors for us to have a greater reach and diversity of audiences; Throughout the year we participate in different events, forums, and virtual conferences with allies of NGOs, Universities, the Global Compact, and actors from the Mexican government. Partner National Associations CANACINTRA SCOCE International Associations Global Compact Mexico Network and the United Nations ANAPCOR APR anipac Players # of events May 2020: Presentation of the sustainability report in virtual format and celebration of 25 years of PetStar. March 2020: The Toluca City Council signed the the New Plastics Economy Global Commitment, at the PetStar facilities with the aim of supporting the common vision of global commitment and applying ambitious policies with measurable goals by the year 2025. February 2020: PetStar becomes the 1st Mexican sociación Nacional e Industrias del Plástico, A.C on Clean Sweep company to obtain the "Blue Badge” as part of the RAMA Zero pellet loss program designed by Operation Clean Sweep. DE PELLETS AZUL (D 29 FUNDACION TLALOC Dibujando Mayama CLUB DE NIÑOS Y NIÑAS AMANC SAN LUIS POTOSÍ BOYS AND GIRLS CLUB CSOs comedor Ad HOPE Santa Maria. VOLUCA worldwide Fundade Avina NGOs 6 Universities 12 Grupo Ecológico Sierra Gorda Associations in wich we are board members Government 8 Other companies 3 metidos con > ambiente, da de pellets S PISTA LA FAMGY Sustainability Report PETSTAR 2020 83 83 E O#43Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices Philosophy of Excellence: Certifications, Awards and Recognitions In order to maintain the quality and safety of the business, at PetStar we certify ourselves under the most recognized standards. 84 Sustainability Report 2020 Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs CERTIFIED cradle to cradle Cradle to Cradle Certifications Certification granted by the Cradle to Cradle Products Innovation Institute being the First Recycled PET Resin certified globally. CERTIFICADO ISO 39001 CERTIFIED CERTIFICADO ISO 45001 EGURIDA CERTIFIED ISO 39001 Road safety management certification: In 2020 we achieved the certification of the Xalostoc Collection Plant. To certify the other 7 Collection Plants (Multi-Site Scheme). ISO 45001 Certification of occupational health and safety processes: Recycled Plant (Integrated System) in Toluca. CERTIFICADO ISO 9001 CALIDAD CERTIFIED CERTIFICADO PETSTAR ISO 14001) CERTIFIED ISO 9001 Process and product quality certification: Recycled Plant (Integral System) and 8 Collection Plants (Recertified). ISO 14001 Certification of environmental processes: Recycled Plant (Comprehensive System) and 8 Collection Plants (Recertified). CERTIFICADO ISO 22000 CERTIFIED ISO 22000 Certification in safety of processes and products in the Recycling Plant (Integral System) in Toluca. CERTIFICADO FENTAR ISO 50001 ENERGIA CERTIFIED ISO 50001 Energy efficiency certification: Recycled Plant (Comprehensive System) and 8 Collection Plants (Recertified). PETSTAR QMSTENOT 103-3, GRI 201-1. AND MERASTRUCTURE 17 PARTNERSHIPS FOR THE GOALS U.S.GREEN BUILDING COUNCIL LEED PLATINUM USGBC LEED Platinum (Leadership in Energy & Environmental Design) Certification granted by the US Green Building Council to the PetStar Museum-Auditorium and Multipurpose Room as a sustainable building. Clean Industry Environmental certification granted by the Federal Attorney for Environmental Protection (PROFEPA) to the Recycling Plant in Toluca and the Attorney for Environmental Protection of the State of Mexico (PROPAEM) for compliance with the law and the implementation of good environmental practices of the Recycling Plant in Toluca, Collection Plant of Toluca and Xalostoc. Operation Operation Clean Sweep Blue Clean Sweep Blue International Initiative to prevent pellets, flakes, and dust from reaching the marine ecosystem. Blue Level Certificates (First in MX). Sustainability Report PETSTAR 85 2020#44Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices WORLD Reliability EMPRESA ORLD CLASS CON & Maintenance SEGUR PASST Programa de Autogestión en Seguridad y Salud en el Trabajo Prizes and Awards IDCON World Class Reliability & Maintenance Recognition granted by IDCON INC for obtaining the 1st place Ranking of 200 companies globally evaluated by best practices in preventive maintenance, work management and elimination of root cause problems, among others. Safe Company Workplace Health and Safety Self-Management Program (PASST) Recognition granted by the Ministry of Labor and Social Welfare (STPS) to the 8 Collection Plants and central offices. PREMIO IBEROAMERICANO DE LA CALIDAD NIVEL ORO PREMIO NACIONAL DE CALIDAD HECHO EN MÉXICO Ibero-American Quality Award (Gold Level) Maximum recognition in Ibero-American that distinguishes the excellence and sustainable management of the organization, competing with the winning companies of the National Quality Award of the Ibero-American countries. National Quality Award (PNC) National Quality Award 2017 in the category "Organizational Innovation". Made in Mexico In 2017 we obtained a favorable resolution from the Ministry of Economy, being a 100% Mexican company that contributes to the national economy, using Mexican materials and labor. E> Transporte Limpio SÚPER EMPRESAS EXPANSION ESR Empresa Socialmente Responsable ESR Empresa Socialmente 1% Inversión Social Clean Transportation Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs Awarded by the Ministry of the Environment and Natural Resources (SEMARNAT). Recognition to the fleet for its efficiency and for being environmentally friendly vehicles. Super Companies 2020 The place where everyone wants to work awarded by Grupo Editorial Expansión and Top Companies: 39th Ranking 2020 Ranked for the 7th year.. Socially responsible company Awarded by the CEMEFI (Mexican Center for Philanthropy). Ratified in 2020 for the 6th year. ESR 1% Social Investment Responsable Recognition granted by CEMEFI for donating at least 1% of profits before taxes to any cause of social benefit. PetStar is one of the companies that started with this public commitment. ESR - Social Inclusion ESR Empresa Socialmente Responsable Inclusión Social Distinction granted by CEMEFI for the commitment to promote social inclusion within the company. 86 Sustainability Report 2020 PETSTAR EXCELENCIA Environmental Excellence Maximum recognition granted by the Federal Attorney for Environmental Protection (PROFEPA) and the AMDA Attorney for Environmental Protection of the State of Mexico (PROPAEM), to companies certified with Environmental Performance Level 2 (NDA2), awarded to the Recycling Plant in Toluca. Sustainability Report PETSTAR 87 2020#4588 Sustainability Report 2020 WE SUPPORT UN GLOBA COMPACT Creating value Who we are? Accelerating actions to achieve the SDGs Adherences and achievements | People | Planet | Prosperity | Peace | Partnerships | Appendices Global Compact Mexico Network In 2016 PetStar joined the Global Compact Mexico Network, a UN initiative. In 2019, we became a member of the Executive Board. E> Earth Earth Charter In 2014 PetStar adhered to the Earth Charter an international declaration of fundamental ethical principles Charter. for the construction of a just, sustainable, and peaceful global society. PLASTIES Global Commitment Global Commitment In 2018 we joined the New Plastics Economy Global Commitment, led by the Ellen MacArthur Foundation and the UN Environment, forming part of the first group of signatories together with our main shareholder Arca Continental; both part of the Mexican Coca-Cola Industry, which reinforces through this commitment, its campaign "A World Without Waste". PETSTAR Verde PREMIOS LATINOAMÉRICA Premios Latinoamerica Verde In 2018 we obtained the 2nd place in the ranking of the oceans category. 18 PETSTAR Carbon Neutral Purchase of carbon credits from MexiCO2 and the Toluca city council in favor of Nevado de Toluca. 102-32, GRI 102-54. TEN SIN APPENDICES 89#46Methodolody and materiality Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices RELEVANT ISSUES IMPORTANCE STAKEHOLDERS IMPACT AVERAGE At PetStar, during 2020 we conducted a materiality study in order to determine relevant issues and present information in this regard, taking into account our general mission, corporate strategy and concerns expressed directly by stakeholders. In this exercise, we conducted surveys to find out the perception of the importance of social responsibility in PetStar, taking into account direct and indirect inquiries: Compliance with environmental 1 3.68 3.84 regulations for the company. Treat the process water and neutralize 2 3.60 3.80 the water footprint. Maintain a value offer based on collection services, impeccable 3 3.58 4 3.79 payment, and training for Collector Partners. 2020-2021 Stakeholders Universe Measure and take actions to reduce its 4 3.50 3.75 greenhouse gas emissions. Nationals NGOs Impact on the conservation of habitats 5 3.28 3.64 and biodiversity. Collaborators 290 Consider climate change in business 6 2.95 4 3.47 operations. Collector Partners/ 7 Foster a circular economy. 2.30 4 3.43 Clients DIRECT INQUIRIES Collector Partners/ waste pickers waste pickers 559 Clients DIRECT INQUIRIES Chambers and associations Evaluate and promote respect for 8 3.56 3.28 human rights in all its operations. Suppliers 253 Promotion of actions in favor of social 9 3.54 3 3.27 mobility and inclusive recycling. Have mechanisms to avoid Clients 9 10 3.47 3 3.24 discrimination in all its operations. Suppliers Public opinion Beneficiaries 5 Caring for and strengthening 11 occupational health and safety in the 2.37 3.18 90 Sustainability Report 2020 102-15, 102-21, 103-33, 103-34, PETSTAR GRI 102-40, 102-42, 102-43, 102-44, 102-46, 102-47 workplace. Importance for stakeholders 2.00 2.50 550 3.00 3.50 Creating value | Who we are? Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs >> Materiality graph 4.00 2345 819 10 6 2.00 2.50 3.00 3.50 4.00 Impact of the company Environmental Diversity and Human Rights Health Social Sustainability Report 2020 PETSTAR 91 11 7 1 E>#47UN Global Compact AREAS PRINCIPLES OF THE GLOBAL COMPACT Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices THEME WE SUPPORT GLOBAL COMPACT PAGE AREAS Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs Las Businesses should make sure they are not complicit in human rights abuses. 1 Businesses should support and respect the protection HUMAN RIGHTS of internationally proclaimed human rights, recognized internationally, within their sphere of influence. • Guiding Principles • Code of Ethics and Conduct p. 75 • Supply Policy Free of Child Labor p. 77 Non-compliance Transparency Mailbox p. 77 2 • Alliance with the Global Compact Mexico Network p. 78 p. 70 PRINCIPLES OF THE GLOBAL COMPACT THEME PAGE 7 Business should support a precautionary approach to environmental challenges. • Corporate Sustainability Philosophy • Sustainability System p. 47 p. 47 • Environmental goals p. 49 • The environmental challenges we face • Environmental goals p. 43 p. 56 • Human Capital 3 Business should uphold the freedom of association and the effective recognition of the right to collective bargaining. • Ideas in Action p. 27 • p. 29 . High Performance Work Teams ENVIRONMENT 8 • Alliance with the Global Compact Mexico Network p. 34 Undertake initiatives to promote greater environmental responsibility. • p. 70 • Corporate Sustainability Philosophy p. 47 Sustainability System • • Environmental goals Environmental education • Volunteering for the environment p. 47 p. 49 The environmental challenges we face p. 43 p. 56 p. 58 4 LABOR The elimination of all forms of forced and compulsory labor. empresas • Guiding Principles • p. 75 • Code of Ethics and Conduct p. 77 • ASPECTS Supply Policy Free of Child Labor p. 77 • Non-compliance Transparency Mailbox • 9 Encourage the development and diffusion of environmentally friendly technologies. • Corporate Sustainability Philosophy p. 47 Sustainability System p. 47 Environmental goals p. 49 • 5 The effective abolition of child labor. • Alliance with the Global Compact Mexico Network p. 78 The environmental challenges we face p. 43 • Environmental education • p. 70 Volunteering for the environment p. 56 p. 58 • Guiding Principles 6 The elimination of discrimination in respect of employment and occupation. p. 75 Training and Development p. 28 • PetStar Inclusive Collection Model ANTI- CORRUPTION 10 Alliance with the Global Compact Mexico p. 62 Business should work against corruption in all its forms, including extortion and bribery. Guiding Principles p. 75 • Code of Ethics and Conduct p. 77 • Supply Policy Free of Child Labor • • Non-compliance Transparency Mailbox p. 77 p. 78 Network p. 70 92 Sustainability Report 2020 PETSTAR Sustainability Report PETSTAR 93 2020 E>#48Sustainable Development Goals PEOPLE PLANET 94 Sustainability Report 2020 PETSTAR SDG DESCRIPTION 1 POVERTY NO POVERTY ** End poverty in all its forms everywhere. Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices ZERO HUNGER 2 HUNGER ་་་ GOOD HEALTH 3 AND WELL-BEING W Eradicate hunger, attain food security, improve nutrition and promote sustainable agriculture. GOOD HEALTH AND WELL-BEING Ensure healthy live and promote well-being for all at all ages. QUALITY QUALITY EDUCATION EDUCATION Obtaining quality education is the foundation to improving people's lives and sustainable development. GENDER EQUALITY GENDER EQUALITY Attain gender equality and empower all women and girls. CLEAN WATER 6 AND SANITATION CLEAN WATER AND SANITATION Guarantee the availability of water and its sustainable management, and sanitation for all. SUSTAINABLE DEVELOPMENT GOALS Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs Our people HOW PETSTAR LIVES THEM PAGE SDG DESCRIPTION Training and development p. 25 HOW PETSTAR LIVES THEM PAGE • Circular economy p. 28 PetStar Inclusive Collection Model p. 61 AFFORDABLE AND Social investment p. 62 CLEAN ENERGY AFFORDABLE AND CLEAN ENERGY • p. 67 . PetStar... Bien! Guarantee access to affordable, safe, sustainable and modern energy for all. • Carbon footprint The environmental challenges we face Environmental goals p. 43 p. 45 p. 49 • Energy Intensity . Community Integral Development Center p. 27 Advantages rPET VS VPET p. 52 (CEDIC) . Mayama p. 67 Circular economy p. 61 p. 81 • . Club de Niños y Niñas San Luis Potosí p. 68 DECENT WORK AND ECONOMIC GROWTH DECENT WORK AND ECONOMIC GROWTH PetStar Sustainable Business Model p. 69 • PetStar... Bien! M • Well-being model p. 27 PROSPERITY • Health passport p. 27 Promote sustained, inclusive and sustainable economic growth, fair and productive employment and decent work for all. Performance Evaluation p. 10 Promotions • Guiding Principles • PetStar Inclusive Collection Model p. 33 p. 35 p. 75 p. 36 • Training and development Alliance For Integrity p. 62 p. 79 • Counselling program p. 28 • Environmental education p. 29 PANERASTRUCTURE • Community Integral Development Center p. 56 (CEDIC) . Mayama p. 67 INDUSTRY INNOVATION INDUSTRY, INNOVATION AND INFRASTRUCTURE Build resilient infrastructure, promote inclusive and sustainable industrialization, and drive innovation. PetStar Sustainable Business Model • Ideas in Action p. 10 • Top Companies • . Club de Niños y Niñas San Luis Potosí p. 68 Alliance with the Global Compact Mexico Network p. 29 p. 36 • Certifications p. 70 p. 69 p. 84 • PetStar Sustainable Business Model • Our people • Our people p. 10 • Human Capital Policy p. 25 10 INEQUALITIES REDUCED INEQUALITIES Promotions . Code of Ethics and Conduct p. 27 Reduce inequality in and among countries. Alliance with the Global Compact Mexico p. 25 p. 35 Network Non-compliance Transparency Mailbox p. 77 • PetStar Inclusive Collection Model p. 70 • Target Gender Equality p. 78 • Guiding Principles p. 62 p. 71 • • The environmental challenges we face Alliance For Integrity p. 75 p. 79 • Plastic pollution in the ocean p. 43 SUSTAINABLE CITIES • Environmental goals p. 44 SUSTAINABLE CITIES AND COMMUNITIES • PetStar Sustainable Business Model . Water footprint p. 49 • Circular economy p. 52 Ensure that cities and human settlements are inclusive, safe, resilient and sustainable Alliance with the Global Compact Mexico p. 10 Network PetStar Inclusive Collection Model p. 70 • Earth Charter p. 61 • Earth Charter p. 81 p. 62 p. 81 Sustainability Report PETSTAR 95 2020 E>#49PLANET SDG RESPONSIBLE 12 CONSUMPTION AND PRODUCTION Со DESCRIPTION Creating value Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs RESPONSIBLE PRODUCTION AND CONSUMPTION Guarantee consumption modalities that are sustainable and protected. 13 CLIMATE ACTION CLIMATE ACTION Adopt urgent measures to combat climate change and its effects LIFE 14 BELOW WATER 15 LIFE PEACE PEACE JUSTICE 16AND STRONG INSTITUTIONS LIFE BELOW WATER Sustainable conservation and use of the oceans, seas and marine resources for sustainable development. LIFE ON LAND Protect, reestablish and promoted the sustainable use of land ecosystems, sustainably manage forests, combat desertification, halt and reverse land degradation, halt biodiversity sustainably. PEACE, JUSTICE AND STRONG INSTITUTIONS Promote peaceful and inclusive societies for sustainable development, facilitate access to justice for all and create efficacious, responsible and inclusive institutions at all levels. ALLIANCES PARTNERSHIPS FOR THE GOALS PARTNERSHIPS FOR THE GOALS Strengthen the means of execution and revitalize the global partnership for sustainable development. Sustainability Report PETSTAR 96 2020 E> Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs HOW PETSTAR LIVES THEM PAGE Earth Charter • PetStar Sustainable Business Model Carbon footprint p. 10 . Environmental education p. 50 Earth Charter. . Collection process p. 56 p. 63 • Cradle to Cradle • Guiding Principles p. 65 PRINCIPLES • Alliance for Integrity p. 75 THEME PAGE p.79 . Carbon footprint . Zero waste p. 50 I. RESPECT THE EARTH AND TAKE CARE OF THE COMMUNITY OF LIFE . Use of caps and labels into new beverage p. 52 1 crates Zero leak of plastics p. 53 Respect Earth and life in all its diversity. • Advantages rPET VS VPET p. 54 • Environmental education p. 55 . Circular economy p. 56 2 p. 61 Care of the community of life with understanding, compassion and love. • PetStar Sustainable Business Model • Water Footprint • Corporate Profile • Zero leak of plastics p. 52 p. 10 p. 12 • Sustainability System Principles for a Sustainable Ocean p. 54 3 p. 47 . Earth Charter p. 72 Build democratic societies that are just, participatory sustainable and peaceful. p. 81 • PetStar Sustainable Business Model PetStar Inclusive Collection Model Alliance with the Global Compact Mexico Network p. 62 • Green rooftops and PetStar's Greenhouse p. 10 p. 70 • Carbon footprint p. 51 4 p. 50 Secure Earth's bounty and beauty for present and future generations. . Zero waste • Efficient use of paper p. 52 p. 54 • Advantages rPET VS VPET . Environmental education p. 55 II. ECOLOGICAL INTEGRITY p. 56 . Guiding Principles • Code of Ethics and Conduct p. 75 5 • Non-compliance Transparency Mailbox p. 77 Alliance for Integrity p. 78 Earth Charter p. 79 p. 81 6 . ARISE p. 81 Protect and restore the integrity of Earth's ecological systems, with special concern for biological diversity and the natural processes that sustain life. Prevent harm as the best method of environmental protection and, when knowledge is limited, apply a precautionary approach. . The environmental challenges we face • • Alliance with the Global Compact Mexico Network Memberships and associations p. 70 7 . Philosophy of Excellence: Certifications, p. 82 Adopt patterns of production, consumption, and reproduction that safeguard Earth's regenerative capacities, human rights, and community well-being. Awards and Recognitions • p. 84 8 Advance the study of ecological sustainability and promote the open exchange and wide application of the knowledge acquired. p. 43 Corporate Sustainability Philosophy • Environmental goals p. 47 p. 49 • Advantages rPET VS VPET Environmental education p. 55 p. 56 Sustainability Report PETSTAR 97 46 2020 E>#50PRINCIPLES Creating value Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs III. SOCIAL AND ECONOMIC JUSTICE THEME PAGE 9 Eradicate poverty as an ethical, social, and environmental imperative. 10 Ensure that economic activities and institutions at all levels promote human development in an equitable and sustainable manner. • Corporate Profile p. 12 Training and development p. 28 . Supply Policy Free of Child Labor 11 Affirm gender equality and equity as prerequisites to sustainable development and ensure universal access to education, health care, and economic opportunity. p. 77 • Alliance with the Global Compact Mexico Network p. 70 • Alliance for Integrity p. 79 12 Uphold the right of all, without discrimination, to a natural and social environment supportive of human dignity, bodily health, and spiritual well-being, with special attention to the rights of indigenous peoples and minorities. IV. DEMOCRACY, NONVIOLENCE AND PEACE E> Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs GRI Content Index "compliant" with GRI Standards: essential option GRI STANDARD 13 Strengthen democratic institutions at all levels, and provide transparency and accountability in governance, inclusive participation in decision-making, and access to justice. • Corporate Profile p. 12 • PetStar Inclusive Collection Model p. 62 Social investment p. 67 GRI 102: General Content 14 Integrate into formal education and life-long learning the knowledge, values, and skills needed for a sustainable way of life. Guiding principles p. 75 15 Treat all living beings with respect and consideration. • Code of Ethics and Conduct p. 77 16 Promote a culture of tolerance, nonviolence, and peace. 98 Sustainability Report 2020 PETSTAR • Code of Ethics and Conduct p. 77 GRI 102-55 CONTENT GRI 101: 2016 Foundations General Content PAGE/DIRECT ANSWER OMMISIONS 102-1 Organization's name 102-2 Activities, brands, products and services 102-3 Headquarters location 102-4 Operations location 102-5 Nature of the ownership and legal form 102-6 Served markets 102-7 Size of the organization 102-8 Information about employees and other workers 102-9 Supply chain 102-10 Significant changes in the organization and in its supply chain 102-11 Caution principle or approach 102-12 External initiatives PetStar S.A.P.I. de C.V. Who we are? p. 8 PetStar Sustainable Business Model p. 10 Corporate Profile p. 12 PetStar Inclusive Collection Model p. 62 Cradle to Cradle p. 65 Contact p. 111 Our people p. 25 Corporate Profile p. 12 Our shareholders p. Clients process p. 64 Our people p. 13 13 Financial indicators p. 66 Our people p. 25 Suppliers p. 66 Committees within the Board of Administration p. 17 Risk Management p. 17 Financial and Tax, Environmental, Social and Governance Partnerships p. 80 Partnerships p. 80 102-13 Associations and accessions 102-14 Statements of top executives responsible for decision making processes Letter from the CEO and Message from the Chairman of the PetStar Board of Administration p. 4 Sustainability Report PETSTAR 99 2020 E>#51100 Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices GRI STANDARD GRI 102: General Contents CONTENT 102-15 Main impacts, risks and opportunities 102-16 Values, principles, standards and conduct standards 102-17 Counselling mechanisms and concerns 102-18 Governance structure 102-19 Delegation of authority 102-20 Executives' responsibility related to economic, environmental and social affair 102-21 Consultation with stakeholders about economic, environmental and social affairs 102-22 Board of administration and its committees 102-23 Chairman of the Board 102-24 Nomination and selection to the board of administration 102-25 Conflicts of interest 102-26 Role of the board of administration when choosing objectives, values and strategy 102-27 Collective knowledge of the board of administration 102-28 Performance evaluation of the board of administration PAGE/DIRECT ANSWER Letter from the CEO and Message from the Chairman of the PetStar Board of Administration p. 4 PetStar in numbers p. 6 Committees within the Board of Administration p. 17 Methodolody and materiality p. 90 Guiding principles, Human Rights Protocol, Ethical conduct/regulatory compliance and anti-corruption, o Conduct Guide to Live the Values, Non-compliance Transparency Mailbox p. 75-78 Guiding principles, Human Rights Protocol, Ethical conduct/regulatory compliance and anti-corruption, o Conduct Guide to Live the Values, Non-compliance Transparency Mailbox p. 75-78 Corporate Profile p. 12 Corporate Profile p. 12 Corporate Profile p. 12 Methodolody and materiality p. 90 Corporate Profile p. 12 Corporate Profile p. 12 Corporate Profile p. 12 Ethical conduct / regulatory compliance and anti- corruption p. 77 Corporate Profile p. 12 Corporate Profile p. 12 Corporate Profile p. 12 Sustainability Report 2020 PETSTAR OMMISIONS E> GRI STANDARD CONTENT Creating value | Who we are? Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs PAGE/DIRECT ANSWER GRI 102: General Contents 102-29 Identification and management of economic, environmental and social impacts 102-30 Risk management efficiency 102-31 Review of economic, environmental and social topics 102-32 Role of the board of administration when developing sustainability reports 102-33 Communicating ethical concerns 102-34 Total number and nature of critical concerns 102-35 Compensation policies 102-36 Process to determine compensation 102-37 Stakeholders engagement in compensation 102-38 Total annual compensation ratio 102-39 Percentage increase ratio of the total annual compensation 102-40 Stakeholders list 102-41 Collective contract negotiation 102-42 Identification of stakeholders 102-43 Approach for stakeholders participation Letter from the CEO and Message from the Chairman of the PetStar Board of Administration p. 4 PetStar in numbers p. 6 Committees within the Board of Administration p. 17 Methodolody and materiality p. 90 Letter from the CEO and Message from the Chairman of the PetStar Board of Administration p. 4 PetStar in numbers p. 6 Committees within the Board of Administration p. 17 Methodolody and materiality p. 90 Letter from the CEO and Message from the Chairman of the PetStar Board of Administration p. 4 PetStar in numbers p. 6 Committees within the Board of Administration p. 17 Methodolody and materiality p. 90 Appendices p. 89 Methodolody and materiality p. 90 Methodolody and materiality p. 90 Structure of the Board of Administration p. 16 Structure of the Board of Administration p. 16 Structure of the Board of Administration p. 16 Confidentiality issues. Salaries are not public information for personal safety reasons. Confidentiality issues. Salaries are not public information for personal safety reasons. Methodolody and materiality p. 90 Our people p. 25 Methodolody and materiality p. 90 Methodolody and materiality p. 90 OMMISIONS Sustainability Report PETSTAR 101 2020#52GRI STANDARD GRI 102: General Contents MATERIAL GRI 103: Management Approach Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices CONTENT 102-44 Key topics and concerns mentioned 102-45 Entities included in consolidated financial statements 102-46 Definition of the contents of the report and Coverages of the topic 102-47 List of material topics 102-48 Information restatement 102-49 Changes during the preparation of reports 102-50 Reporting period 102-51 Date of the last report 102-52 Cycle of reports preparation 102-53 Contact for report questions 102-54 Statement of the report in accordance with GRI Standards 102-55 Index of GRI content 102-56 External verification PAGE/DIRECT ANSWER Methodolody and materiality p. 90 Our Shareholders p. 13 Financial indicators p. 66 Methodolody and materiality p. 90 Methodolody and materiality p. 90 No changes. No changes. January 1st to december 31st 2020. 2019. Annual. Contact p. 111 Appendices p. 89 GRI Content Index p. 99 About this Report p. 110 MATERIAL TOPICS Environment Sustainability System p. 47 OMMISIONS E> GRI STANDARD CONTENT Creating value | Who we are? Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs PAGE/DIRECT ANSWER GRI 201: Economic Performance GRI 202: Market Presence 201-2 Financial implications and other risks and opportunities due to climate change 201-3 Defined benefit plan obligations and other retirement plans 201-4 Financial assistance received from government 202-1 Ratios of standard entry level wage by gender compared to local minimum wage 202-2 Proportion of senior management hired from the local community 203-1 Infrastructure investments and services supported 203-2 Significant indirect economic impacts GRI 203: Indirect Economic Impacts GRI 204: Procurement Practices 204-1 Proportion of spending on local suppliers GRI 205: Anti-Corruption GRI 206: Anti-Competitive Behavior 205-1 Operations assessed for risks related to corruption 205-2 Communication and training about anti-corruption policies and procedures 205-3 Confirmed incidents of corruption and actions taken 206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices Financial and Tax, Environmental, Social and Governance Risk Management p. 17 Energy intensity p. 50 Cradle to Cradle p. 65 PetStar... Bien! p. 27 Quality of Life p. 35 Security and health p. 36 Our people p. 25 Social investment p. 67 Financial indicators p. 66 Social investment p. 67 Suppliers p. 66 Ethical conduct/Regulatory compliance and anti-corruption p. 77 Human Capital Policy p. 27 Supply Policy Free of Child Labor p. 77 103-1 Explanation of the topic and its Coverage 103-2 Management approach and its components 103-3 Evaluation of the management approach Environmental goals p. 49 Environmental education p. 56 Corporate Sustainability Philosophy, Sustainability System, Environmental goals p. 47-49 207-1 Approach to tax Sustainability System p. 47 GRI 207: Philosophy of Excellence: Certifications, Awards and Recognitions p. 84 Tax GRI 201: Economic Performance 201-1 Direct economic value generated and distributed Financial indicators p. 66 Social investment p. 67 Philosophy of Excellence: Certifications, Awards and Recognitions p. 84 Sustainability PETSTAR 102 Report 2020 207-2 Tax governance, control, and risk management Financial and Tax, Environmental, Social and Governance Risk Management p. 17 Financial Indicators p. 66 Financial and Tax, Environmental, Social and Governance Risk Management p. 17 Financial Indicators p. 66 OMMISIONS Sustainability Report PETSTAR 103 2020#53104 GRI 207: Tax GRI STANDARD CONTENT 207-3 Stakeholder engagement and management of concerns related to tax Creating value Who we are? Accelerating actions to achieve the SDGs Does not apply. | People | Planet | Prosperity | Peace | Partnerships | Appendices PAGE/DIRECT ANSWER GRI 207: Tax GRI 301: Materials GRI 301: Materials WATER GRI 103: Management Approach 207-4 Country-by-country reporting 301-1 Materials Used by Weight or Volume 301-2 Recycled Inputs 301-3 Reused Filling Products and Materials 103-1 Explanation of the material topic and Coverage 103-2 Management Approach and Its Components 103-3 Management Approach Evaluation Does not apply. PetStar in numbers p. 6 Zero waste p. 52 Efficient use of paper p. 54 Advantages rPET VS VPET p. 55 PetStar in numbers Zero waste p. 52 p. 6 Efficient use of paper p. 54 Advantages rPET VS VPET p. 55 Use of caps and labels into new beverage crates p. 53. PetStar in numbers p. 6 Zero waste p. 52 Efficient use of paper p. 54 Advantages rPET VS VPET p. 55 Environmental goals p. 49 Environmental goals p. 49 Environmental goals p. 49 Sustainability Report PETSTAR 2020 OMMISIONS The fiscal compliance of the company is done in strict adherence to Mexican laws on the matter. It is a simple relationship of taxpayer tax authority where everything stipulated is fulfilled. E> GRI 303: Water GRI STANDARD BIODIVERSITY GRI 103: Management Approach GRI 103: Management Approach GRI 301: Materiales CONTENT Creating value | Who we are? Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs PAGE/DIRECT ANSWER 303-1 Water Extraction By Source 303-2 Water Sources Significantly Affected By Water Extraction 303-3 Recycled and Reused Water 103-1 Explanation of the material topic and Its Coverage 103-2 Management Approach and Its Components 103-3 Management Approach Evaluation 304-1 Operation Centers of our property, leased or managed, located inside or next to protected areas or areas with a high value for biodiversity outside protected areas 304-2 Significant Impacts of Activities, Product and Services in Biodiversity 304-3 Protected or Restored Habitats 304-4 Species in the IUCN (International Union for Conservation of Nature) Red List and in Domestic Conservation Listings with Habitats in Affected Areas Caused by Operations Environmental goals p. 49 Water footprint p. 52 PetStar operations did not affect water sources Water footprint p. 52 Advantages rPET VS VPET p. 55 Green rooftops and PetStar's Greenhouse p. 51 Zero leak of plastics p. 54 Advantages rPET VS VPET p. 55 Environmental education p. 56 Volunteering for the environment p. 58 Green rooftops and PetStar's Greenhouse p. 51 Zero leak of plastics p. 54 Advantages rPET VS VPET p. 55 Environmental education p. 56 Volunteering for the environment p. 58 Zero leak of plastics p. 54 Advantages rPET VS VPET p. 55 Environmental education p. 56 Environmental education p. 56 Zero leak of plastics p. 54 Green rooftops and PetStar's Greenhouse p. 51 PetStar plants and corporate have no impact on biodiversity and other protected areas. OMMISIONS Sustainability Report PETSTAR 105 2020#54106 GRI STANDARD CONTENT Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices PAGE/DIRECT ANSWER OMMISIONS E> GRI STANDARD CONTENT Creating value | Who we are? Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs PAGE/DIRECT ANSWER EMISSIONS GRI 103: Management Approach GRI 305: Emissions 103-1 Explanation of the material topic and Its Coverage 103-2 Management Approach and Its Components 103-3 Management Approach Evaluation 305-1 Other Direct GHG Emissions (Scope 1) 305-5 GHG Emissions Drop ENVIRONMENTAL COMPLIANCE GRI 103: Management Approach GRI 306: Waste 2020 103-1 Explanation of the material topic and Its Coverage 103-2 Management Approach and Its Components 103-3 Management Approach Evaluation 306-1 Waste generation and significant waste-related impacts 306-2 Management of significant waste-related impacts Corporate Sustainability Philosophy, Sustainability System p. 47 Environmental goals p. 49 Corporate Sustainability Philosophy, Sustainability System p. 47 Environmental goals p. 49 GRI 306: Waste 2020 Corporate Sustainability Philosophy, Sustainability System p. 47 Environmental goals p. 49 GRI 307: Environmental Compliance Carbon footprint p. 50 Advantages rPET VS VPET p. 55 Cradle to Cradle p. 65 Carbon footprint p. 50 Advantages rPET VS VPET p. 55 Cradle to Cradle p. 65 PetStar Sustainable Business Model p.10 Sustainability System p. 47 Corporate Sustainability Philosophy p. 47 Suppliers p. 66 PetStar Sustainable Business Model p.10 Sustainability System p. 47 Corporate Sustainability Philosophy p. 47 Suppliers p. 66 PetStar Sustainable Business Model p.10 Sustainability System p. 47 Corporate Sustainability Philosophy p. 47 Suppliers p. 66 Corporate Sustainability Philosophy p. 47 Zero waste p. 52 Efficient use of paper p. 54 Corporate Sustainability Philosophy p. 47 Zero waste p. 52 Efficient use of paper p. 54 306-3 Waste generated 306-4 Waste diverted from disposal 306-5 Waste directed to disposal 307-1 Non Compliance of Legislation and Environmental Standards EMPLOYMENT GRI 103: Management Approach 103-1 Explanation of the material topic and Its Coverage 103-2 Management Approach and Its Components 103-3 Management Approach Evaluation GRI 401: Employment GRI 401: Employment GRI 403: Occupational Health and Safety 401-1 New employee hires and employee turnover 401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees 401-3 Parental Leave 403-1 Occupational health and safety management system 403-2 Hazard identification, risk assessment, and incident investigation 403-3 Occupational health services 403-4 Worker participation, consultation, and communication on occupational health and safety Corporate Sustainability Philosophy p. 47 Zero waste p. 52 Efficient use of paper p. 54 Zero waste p. 52 Zero waste p. 52 No significant fines nor sanctions were received for environmental concepts. PetStar Inclusive Collection Model p. 62 PetStar Inclusive Collection Model p. 62 PetStar Inclusive Collection Model p. 62 Our people p. 25 Human Capital p.27 Training and development p. 28 Promotions p. 35 Our people p. 25 Human Capital, PetStar... Bien!, Well-being model p. 27 Training and development p. 28 Leadership Model for Excellence p. 30 High Performance Work Teams p. 34 Quality of Life p. 35 Does not apply. Security and health p. 36 PetStar against COVID-19 p. 38 Security and health p. 36 PetStar against COVID-19 p. 38 Security and health p. 36 PetStar against COVID-19 p. Security and health p. 36 PetStar against COVID-19 p. 38 38 Sustainability Report PETSTAR 2020 OMMISIONS Sustainability Report PETSTAR 107 2020#55108 Creating value Who we are? Accelerating actions to achieve the SDGs | People | Planet | Prosperity | Peace | Partnerships | Appendices GRI STANDARD GRI 404: Training and Education GRI 405: Diversity and Equal Opportunity CONTENT 404-1 Average hours of training per year per employee 404-2 Programs for upgrading employee skills and transition assistance programs 404-3 Percentage of employees receiving regular performance and career development reviews 405-1 Diversity of governance bodies and employees 405-2 Ratio of basic salary and remuneration of women to men PAGE/DIRECT ANSWER Training and development p. 28 Our people p. 25 Human Capital p.27 Training and development p. 28 Promotions p. 35 Our people p. 25 Human Capital, PetStar... Bien!, Well-being model p. 27 Training and development p. 28 Leadership Model for Excellence p. 30 High Performance Work Teams p. 34 Quality of Life p. 35 Promotions p. 35 Our people p. 25 Human Capital p.27 Training and development p. 28 Promotions p. 35 Does not apply. SOCIAL NO DISCRIMINATION GRI 103: Management Approach GRI 406: Non discrimination 103-1 Explanation of the material topic and Its Coverage 103-2 Management Approach and Its Components 103-3 Management Approach Evaluation 406-1 Discrimination Cases and Corrective Actions Taken HUMAN RIGHTS EVALUATION Code of Ethics and Code of Conduct p. 77 Code of Ethics and Code of Conduct p. 77 Code of Ethics and Code of Conduct p. 77 Non-compliance Transparency Mailbox p. 77 GRI 103: Management Approach Sustainability Report PETSTAR 2020 103-1 Explanation of the material topic and Its Coverage Guiding principles p. 75 Human Rights and Business Initiative p. 76 Supply Policy Free of Child Labor p. 77 Code of Ethics and Code of Conduct p. 77 Conduct Guide to Live the Values p. 78 OMMISIONS E> GRI STANDARD CONTENT Creating value | Who we are? Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs PAGE/DIRECT ANSWER 103-2 Management Approach and Its Components GRI 103: Management Approach GRI 412: Human Rights Evaluation GRI 413: Local Communities GRI 416: Costumer Health and Safety GRI 419: Socioeconomic Compliance 103-3 Management Approach Evaluation 412-1 Operations subject to reviews or evaluations of impact on human rights 412-2 Employee training in human rights policies or procedures 412-3 Significant investment agreements and contracts with human rights clauses or subject to human rights assessment 413-1 Operations With the Participation of Local Community, Impact Evaluations and Development Programs 413-2 Operations with significant actual and potential negative impacts on local communities 416-1 Assessment of the health and safety impacts of product and service categories 416-2 Incidents of non-compliance concerning the health and safety impacts of products and services 419-1 Non-compliance with laws and regulations in the social and economic spheres Guiding principles p. 75 Human Rights and Business Initiative p. 76 Supply Policy Free of Child Labor p. 77 Code of Ethics and Code of Conduct p. 77 Conduct Guide to Live the Values p. 78 Guiding principles p. 75 Human Rights and Business Initiative p. 76 Supply Policy Free of Child Labor p. 77 Code of Ethics and Code of Conduct p. Conduct Guide to Live the Values p. 78 Supply Policy Free of Child Labor p. 77 Human Capital p.27 Training and development p. 28 Supply Policy Free of Child Labor p. 77 Supply Policy Free of Child Labor p. 77 Transparency mailbox p. 78 Security and health p. 36 Does not apply. Cradle to Cradle p. 65 Does not apply. Does not apply. 77 OMMISIONS Sustainability Report 2020 PETSTAR 109#56About this report Creating value Who we are? Accelerating actions to achieve the SDGs BNR | People | Planet | Prosperity | Peace | Partnerships | Appendices Revisión independiente de sostenibilidad Informe de Gestión Consolidado de 2020 - PetStar The PetStar 2020 Sustainability report records the activities and results of the company in its economic, social, and environmental performance from January 1 to December 31, 2020. This report has been prepared in accordance with the Essential option of the GRI Standards, based on the Principles of the Earth Charter, the Sustainable Development Goals (SDGs) and the Principles of the Global Compact and has been verified by an independent third party: BNR, Boutique de Negocios Responsables S.A. de C.V., who reviewed the content and performance indicators to verify that the Report contains reliable data. For its preparation and design, we had the advice of Promotora ACCSE, SA de CV. For the definition of its content, a materiality analysis was carried out that consisted of direct consultations with collaborators, clients, and suppliers, as well as indirect consultations with secondary sources information. Its content, writing and design was approved by the Central Sustainability Committee, headed by the CEO of the company. Integrantes del Consejo de Administración y Accionistas PetStar Presentes: Abril 2021 BNR, Boutique de Negocios Responsables SA de CV atenciendo e requemento de la empresa PetStar, SAPI de CV ha realizada la revisión del contenido y soporte del informe de Sustentabilidad de PetStar 2020 Como empresa consultora en la materia al objetivo en nuestra ntervención se basa en revisar los c presentados, el alcance de la información, la exhaustividad de los asuntos abordados, asi como la redacción exacta del informe. En adecuación y concordancia con los datos solicitados según los crtenos de UN Global Compact para las compañias que deseen contar con un nivel avanzado en las estrategias de comunicación sobre el progreso (COP) El programa de trabajo desarrollado, bavo como eje rector la revisión de los 21 enteros establecidos para COP Avanzados y la quia de Autoevaluación para la implementación del Sistema de Gestión del Pacto Mundial. Con ello tenemos información relevante para not ficar sobre la aplicación del Modelo de Gestión del Pacto Mundial y realizar el reporte de indicadores que proporcionan muestras relevantes sobre la información an temas de sostenibilidad. La revision consistió en un analiss exhaustivo sobre las acciones emprendidas en terras de responsabilidad social y sustentabilidad de PetStar durante todo el 2020 De igual forma, se examinó la veracidad de los datos presentados, previo olandlisis de la cobertura. relevancia e integridad de la información incluida en or documento. Ello considera la revisión a su enfoque de gestión, así como a los 4 ejes de los principios del Pacto Mundial Derechos Humanos, Estándares Laborales, Anticorrupción y Medio Ambiente De acuerdo con alcance de este anais se considera que el informe de Sustentabilidad Petar 2020 cumple con los requisitos para ser un COP Avenzado de conformidad con los criterios para los informes corporativos citados del Pacto Mundial. En este sentido, resulta relevante destacar lo siguiente ■ Una estrategia consolidada durante los últimos anos basada en un modelo de negocio sustentable. . Un compromiso público sobre su estrategia de gestión de cara a los Principios del Pacto Mundial y su aporte allo Objetivos de Desarrollo Sostenible de Naciones Unidas (Agenda 2030) Una declaración de asuntos materiales basado en las esferas de influencia persona, planeta, paz prosperidad y lanza • Stema de gestión de sustentabilidad en el que se integran estrategias aliadas a temas relevantes para los grupos de interés Muestras de diálogo con sus diversos grupos de interés que permiten tener un alcance certero de la Información • Establecimiento de compromisos verificados y alineación de operaciones a las Convenciones Internacionales en materia de Derechos Humanos Un compromiso a favor del respeto de los estándares laborales • Accions ambientales concretas alineacias a la Agenda 2030 para la mitigación y adaptación del cambio climático. Un cumplimiento normativo que garantiza la integridad corporativa de la organización gracias a iniciativa de la empresa que le permiten combatir la corrupción + Acciones concretas que es permitieron amontar de forma responsable la pandemia por Covid-19 a través de protocolos para la identificación, atención y seguimiento de casos. En adición a estas conclusiones, BNR ha entregacio a PetStar un listado de acciones de mejora a emprender. En caso de que sea recesario complementar o precisar información, PetStar ha pronunciado públicamente su interés per completar dichas observaciones on un escnto adicional en su sitio web o algún otro medio de comunicación asi como emprender mejoras en la creación de la siguiente memora de sustentabad 2001 Sustainability 102-3, PETSTAR GRI 102-53 110 Report 2020 Audlica Hira Angela González Directora General bnr.com.mx Mr Elzabeth Hernandez Gerne de Proyectos Diego Salas Consultor specialista @BNRconsultoria in பட f Contact ☐ www.petstar.mx [email protected] Redes sociales f@PetStarMX @Petstarmx O@petstarmx PetStartv Creating value | Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships | Appendices to achieve the SDGs WE SUPPORT UN GLOBAL COMPACT This is our Communication on Progress in the application of the principles of the United Nations Global Compact. We welcome any comments on its content. E> Sustainability Report PETSTAR 111 2020#57Acknowlegdements Creating value Who we are? | Accelerating actions | People | Planet | Prosperity | Peace | Partnerships Appendices to achieve the SDGs At PetStar we recognize the valuable effort, dedication and professionalism of all the people who collaborate with us. This report seeks to reflect their hard daily work building the circular economy of PET packaging without leaving anyone behind. The report is possible thanks to the collaboration of the teams of the different directions of the company. We thank the entire PetStar structure for having provided the information required for the preparation of this report. The data collected and their review were key to objectively reporting our performance. We particularly appreciate the participation of: Sustainability Danya Lucía Loustaunau Schraidt Carlos Mendieta Zerón Design Zeltzin Dafne Hernández Zambrano Luis Daniel Robles Pardo Communication Mónica Salinas Esquivel Miriam Anai García Olmos Ximena Alexa Martínez Jiménez Projects Jorge Cibrian González Likewise, we appreciate the trust that our shareholders, partners and stakeholders have placed in the structure and management of PetStar. Without this relationship of mutual trust, the data reported here would not have been achieved. Finally, we want to acknowledge the ACCSE team, Acción Social Empresarial, for contributing to the integration, drafting and design of this worthy example of transparency and accountability. 112 Sustainability Report 2020 PETSTAR E>