11

Mexico Sustainability Profile – English

Embed Size (px)

DESCRIPTION

 

Citation preview

Page 1: Mexico Sustainability Profile – English
Page 2: Mexico Sustainability Profile – English

A Message from Our PresidentGE Mexico is pleased to present this Sustainability Profile in which we articulate our commitment to the sustainable development of Mexico, and the sustainable management of our business.

This report, undertook for the first time in Mexico, provides a broad vision of the initiatives implemented by the company throughout the year and of the impacts of the company’s decisions and operations in the country. The metrics contained in this document relate to the period from January 1st to December 31st, 2012.

We are committed to solving problems for our customers and our communities, to finding solutions that benefit the planet, its people and the economy. This commitment is part of our business strategy as well as of our culture. This is how we define Citizenship at GE: a full-time commitment to improving our social, governance, environmental and economic sustainability efforts.

GE started operating in Mexico in 1896 and has diversified its business over the last 116 years. Today our company is dedicated to technology, research, and innovation to address Mexico’s challenges in the energy, water, oil and gas, health and transportation infrastructures. Building, powering, moving, curing: this is how GE works, whether it is through responsible business, GE Foundation’ social investment, or GE Volunteers’ activities in the communities where we operate.

Mexico has experienced rapid economic and industrial change over the last decades, which has led to new business opportunities but also to

significant sustainability challenges. The country has become one of the world’s 15 largest economies and maintained a growth of 3.9 percent in 2012. The middle class has been rising and today represents 39.2 percent of the population. In this context there is a need for massive investments in infrastructure to sustain the country’s economic growth. Also, governments are seeking to promote economic growth and development through local content production requirements for international companies.

Our business strategy responds to these local priorities. Publishing this Sustainability Profile is part of this undertaking and of our willing to demonstrate our dedication to Mexico’s sustainable development. This publication is focused on three areas: People, Planet and Economy. Across these sections, we try to illustrate our belief that technology and talent are key elements to meeting Mexico’s sustainability objectives.

TECHNOLOGYWe invested US$24 million to expand GE Advanced Engineering Center (GEIQ). GEIQ is producing high-quality products for aeronautical and power generation customers, thanks to the expertise of 1,600 local engineers and our specialized testing facilities and computer science infrastructure. In parallel, our businesses continue to expand our ecomagination and healthymagination portfolios, thereby enabling our customers and communities to be more productive and resilient.

TALENTInnovation and technology development require talent, and GE is deeply committed to developing people. We believe our contribution is all the more important as the country is facing a shortage of qualified labor, essential to sustain economic growth and improve Mexico’s competitiveness. We believe that education systems must align with the changing requirements of the economy, and that employers and educational institutions must collaborate over skills development. Our contributions range from our partnerships with universities, GE Foundation and GE Volunteers’ long-standing collaboration with Junior

Achievement, to GE’s leadership programs.

Looking forward, we recognize there is much work to do, and we will continue our sustainability efforts as an integral component of GE’s business growth in Mexico.

I hope you enjoy the reading.

Reinaldo GarciaPresidente & CEO Latin America

2 3

Reinaldo GarciaPresidente & CEO Latin America

“Mexico has experienced rapid economic and industrial change over the last decades, which has led to new business opportunities but also to significant sustainability challenges.“

Leadership Leadership

Page 3: Mexico Sustainability Profile – English

Our CompanyFor more than 130 years, GE has put imagination into practice by solving some of the world’s toughest challenges.IInventor of the electric light bulb and at least a thousand other innovations, Thomas Edison founded the Electric Light Company in 1879—the first step towards creating GE. Today, GE is an advanced technology, services, and finance company taking on the world’s toughest challenges. Dedicated to innovation in energy, water, health, and transportation infrastructures, GE operates in more than 160 countries and employs about 305,000 people globally. Building, powering, moving, and curing: this is how GE Works.

GE in MexicoMexico is the first country in Latin American where GE started operating. The company began operations in Mexico in 1896 and established its first manufacturing plant in 1929. Since then, Mexico has become an international hub for technology, innovation, and manufacturing.

Today, we operate 18 manufacturing facilities, 8 service centers, and a Center for Advanced Engineering with 1,600 Mexican engineers, where we focus on how we can develop and bring world-class GE technologies and solutions to address Mexico’s infrastructure challenges. With more than 10,500 employees and more GE industrial facilities than in any other country in the world outside the United States, Mexico represents GE’s second largest market in Latin America and the 14th in the world.

GE CapitalGE Capital is a leading provider of lending and leasing solutions for companies of all sizes in a wide array of industries. We work closely with our customers to provide financing to purchase, lease, and distribute equipment. We also provide capital for corporate acquisitions, refinancing, and restructuring operations, as well as services to manage large fleets of cars and other automotive equipment.

GE AviationGE Aviation is a world-leading provider of jet engines and systems for aircrafts, with an extensive global service network to support its customers worldwide.

GE Energy ManagementGE Energy Management develops solutions for the delivery, management, conversion, and optimization of electrical power for energy production and distribution companies in Mexico and worldwide. GE Energy Management is divided into three business units: GE Digital Energy, GE Power Conversion, and GE Industrial Solutions.

GE HealthcareGE Healthcare provides medical technologies and services. With extensive knowledge in diagnostic imaging and information technology, patient monitoring systems, drug discovery, and manufacturing technologies for pharmaceuticals, GE Healthcare is helping healthcare professionals to provide better care to patients around the world.

GE Power & WaterGE Power & Water provides power generation and water process solutions, including renewable sources, such as wind and solar, biogas and alternative fuels, coal, oil, natural gas, and nuclear energy. A world leader in systems, and processes,, and water and wastewater treatment, GE Power & Water produces aero-derivatives gas turbines, gas engines, power generation services, including nuclear power, renewable, and thermal energy,

and water process technologies.

GE TransportationGE Transportation is a global technology leader and supplier to the railroad, marine, drilling, wind, and mining industries. GE Transportation provides freight and passenger locomotives, railway signaling and communications systems, information technology solutions, marine engines, motorized drive systems for mining trucks and drills, high-quality replacement parts, and value added services.

GE LightingGE was born from the invention of the first affordable, incandescent lamp in the world. More than a century later, GE has revolutionized the industry with the development of new technologies, such as fluorescent and Light Emitting Diode (LED) technologies. LED lighting solutions are more energy efficient and entail lower cost of operation. In Mexico, GE Lighting delivers products under the trademark of Smart Energy, in addition to other GE registered trademarks: Evolve, GTx, Immersion, Infusion, Lumination, and Tetra.

GE AppliancesGE is one of the largest appliance manufacturers in the world. In Mexico, GE Appliances has established a joint venture with Mabe.

GE Oil & GasGE Oil & Gas is a world leader in equipment and advanced technology services for all segments of oil and gas drilling and production, Liquefied Natural Gas (LNG), pipelines and storage power generation, refining, and petrochemicals. In Brazil, GE Oil & Gas manufactures and repairs system wellheads and Christmas trees in the industrial facilities of Jandira (SP) and Macaé (RJ). In Niterói (RJ), GE Oil & Gas manufsctures inspection equipment and controls, and has built the first Customer Application Center in Latin America. In Bonsucesso (RJ), GE Oil & Gas manufactures pumps and fuel tank gauging systems.

4 5

GE sities in México

Our Company Our Company

Page 4: Mexico Sustainability Profile – English

Citizenship at GE is a full-time commitment to improving our social, governance, environmental, and economic sustainability efforts in the countries where we operate

GE’s code of conduct, “The Spirit & The Letter,” guides the way we do business in Mexico. Citizenship is a central element of our mission and performance, and we strive to embed our sustainability efforts in our strategy, core business operations, and daily actions.

As in any other country, the challenges that we face in Mexico are unique and require efforts that are developed and implemented locally. To be sustainable is to be competitive today and in the future, and our commitment to citizenship is key to meeting our short-term objectives and ensuring the long-term sustainability of our business.

Over the past few decades, Mexico has experienced rapid industrial, political, and economic change, which has led to new business opportunities, but also to significant sustainability challenges.

Politically, Mexico has made advances in democratic consolidation. Electoral reforms have contributed to more competitive political parties, but democratic institutions still face challenges, including insufficient established mechanisms for public participation in the policy-making process, low levels of women participation in politics, and organized crime and violence.

Economically, Mexico is one of the world’s 15 largest economies and has a huge potential for accelerating economic growth. The country has maintained a growth of 3.9 percent in 2012. However, long-term issues include the need to advance fiscal reforms to address the decline in oil revenues and spending pressures from health and pensions.

With an estimated population of over 116 million, Mexico is now considered as an upper-middle

income country by the World Bank. According to Mexico’s National Statistics Institute (INEGI), the middle class encompasses 39.2 percent of the population, which represents a four percentage-point increase from 2000 to 2010. Nonetheless, the overall poverty rate remains around 46 percent, mainly in urban areas. Among the countries of the Organization for Economic Co-operation and Development (OECD), Mexico has the second highest degree of socio-economic disparity. Also, infant mortality is three times higher than the average among OECD nations, and literacy levels are in the median range of OECD nations.

Environmentally, freshwater resource scarcity and pollution, deforestation, and shortages in hazardous waste disposal facilities are key challenges. Mexico is also experiencing massive rural to urban migration, with 78 percent of the population living in cities across the country as of 2010. With more than 21 million inhabitants, Mexico City is the second-largest urban agglomeration in the Western Hemisphere after São Paulo, Brazil.

REGIONALIZING GE’S CITIZENSHIPAs part of our ongoing commitment to help solve these challenges, we went further to localize our global sustainability agenda in Mexico in 2012. This regionalization effort began by identifying Mexico’s social, environmental, and economic challenges most material to GE, and facilitating the incorporation of sustainability principles into our local business strategy, processes, and culture. Our regional sustainability agenda aims to address four key value drivers:

Localization. In Mexico, as in many other emerging economies, governments are looking to global companies to commit to local growth and development and to drive efficiency. Localization covers a variety of questions, such as local content manufacturing requirements, technology transfers, local skills and supply chain development, and local community investment. Localizing GE’s business and expertise in Mexico is part of our business strategy as we aim to collaborate effectively with governments and other stakeholders to meet the country’s

development objectives.

Regulation. The environment has become a public-policy priority, particularly as it relates to infrastructure development. We provide environmental technologies and invest in shaping and supporting sound environmental regulations and public policies.

Customer orientation. With rapid economic growth, social and environmental constraints on our customers and local communities are rising. More companies in Mexico see sustainability as a business imperative, whether this is to secure a license to operate or to harness new growth opportunities. We believe that providing technological solutions offering greater ecoefficiency, as well as aligning our commitments to customer and societal expectations enhances our competitiveness.

Reputation. Being responsive to the expectations of our stakeholders—including those of a future workforce that desires to work at socially responsible companies—is vital to achieving our business goals in Mexico. We are proactively engaging with employees, local communities, universities, business partners, governments, and non-governmental organizations (NGO’s) and expect our local leaders to serve as ambassadors of GE’s citizenship

ACTIONS & PRIORITIES GOING FORWARDIn 2012, we initiated a process of engaging our leaders on reflecting and advancing sustainability throughout our company.

Through this engagement, we have identified four strategic sustainability topics which have become the focus of our local efforts:

• Access to healthcare;

• Skills gap;

• Water scarcity and quality; Energy consumption; Climate change

• Local Development

Among our continuing efforts to address these challenges are:

GE Citizenship in Mexico

6 7

Overview Overview

Page 5: Mexico Sustainability Profile – English

Energy, water, and climate change.Through ecomagination, we are helping our customers to solve their environmental challenges by focusing on improving their water, energy, and GHG emissions footprints, while driving profitable growth. Globally, we have invested more than US$5 billion in clean Research & Development (R&D) since 2005, and we plan to invest another US$10 billion by the end of 2015. The ecomagination platform also includes commitments to improving the environmental performance of our facilities, including reducing our energy and GHG emissions intensity and minimizing our water consumption; and communicating to and inspiring our customers, commercial partners, and the broader public to use more environmentally friendly technologies. For more on ecomagination, visit www.ecomagination.com.

Access to healthcare.Healthymagination, launched in 2009, is our commitment to bringing high-quality, affordable healthcare to more people around the world. Globally, we are committing US$6 billion, with US$3 billion dedicated to developing 100 innovations by 2015 that increase access to higher quality and more affordable healthcare. This commitment also includes strengthening the health for our GE employees through our internal health and quality of life program, HealthAhead. For more on healthymagination, visit: www.healthymagination.com.

Skills development.Developing a skilled workforce is vital to our business and to the overall development and economic growth of Mexico. We have signed collaborative agreements with the main public and private universities in Mexico to promote science and engineering education.

In addition to these three pillars, we are working to improve the quality of our employee-based volunteer programs and GE Foundation-funded initiatives by aligning our social investment and community engagement efforts with the challenges facing our surrounding communities in Mexico.

The way we work with our business and community partners is rooted in our collaborative and high-performance culture, which is expressed through GE’s “growth values”— external focus, inclusiveness, imagination and courage, clear thinking, and expertise.

We are committed to helping our customers succeed, providing our employees with the resources they need to reach their goals and aspirations, and investing in our communities to ensure shared success. We focus our efforts around developing research capabilities and technical skills, improving access to quality healthcare, and investing in the communities where we live and work through social investment and targeted volunteerism.

LOCALIZATION AND CUSTOMERS PARTNERSHIPSTo better serve our customers’ local needs, we invested US$24 million to expand the Advanced

Turbomachinery Engineering Center (CIAT) and began operating it under its new name, GE Advanced Engineering Center (GEIQ), in 2011. The GEIQ is an example of GE’s commitment to conducting R&D that will address technological issues in the aviation and power generation industries.

The GEIQ, based in Querétaro, is an 8,000-square-meter facility where some of the most advanced aeronautical and power generation technologies, designs, and diagnostic tests are being developed and validated. GEIQ is producing high-quality products for aeronautical and power generation customers, thanks to the expertise of 1,600 local engineers and our specialized testing facilities and computer science infrastructure.

To meet customer needs for quieter and more fuel efficient engines, our researchers at GEIQ have actively participated in the design of the GEnx, a next generation turbofan jet engine. The GEnx represents a giant leap forward in propulsion technology and uses the latest-generation

8 9

People

PeopleOverview

Page 6: Mexico Sustainability Profile – English

materials and design processes to reduce weight, improve performance, and lower maintenance costs. GEnx engines deliver 18 percent better fuel consumption (which translates to a decrease in carbon dioxide emissions of 18 percent) than the engines they replace. These engines are also some of the quietest, most passenger-friendly commercial engines ever produced due to larger, more efficient fan blades that operate at slower speeds, resulting in about 30 percent less noise.

We have also demonstrated our commitment to our customers by providing training and sharing best practices. In 2012, we organized the first Leadership For Customers (LFC) program in Mexico for 20 of the most influential executives of major Mexican companies. The leadership course enabled participants to share experiences and gain new perspectives on the opportunities and challenges facing their businesses. During an intensive two-day conference, participants discussed a variety of leadership styles and their effects on quality, business development, and performance.

EMPLOYEESWe work every day to protect our employees by integrating GE’s Environment, Health, and Safety

(EHS) standards into every person’s job and into all business processes.

GE Mexico has one of the best performances in health and safety within GE worldwide, with some of the lowest injury rates and lost-time indicators across the company. In 2012, for every 100 employees, only 0.28 were injured—lower than the GE’s global and regional average rates of 0.95 and 0.59, respectively. Mexico also ranked best in terms of compliance with regulation, with no fines or exceedances in 2012.

One of the ways in which we ensure our workers’ health and safety is through our global health and safety certification award program, GlobalStar™. Built on 21 elements, this program has helped improve teamwork and create a stronger bond with the company, all while building leadership skills and preventing workplace accidents. In 2012, 21 sites out of 24 certificated or re-certificated as GlobalStar™, making Mexico one of GE’s best-ranked countries globally in GlobalStar™ certification.

Our GE LED lighting plant in the city of Acuña, Coahuila, continued to outperform in the area of employee wellness and diversity, receiving the “Inclusive Company” Award for the third consecutive year. The Acuña plant is one of 161 facilities in all of

10 11

People

Volunteerism is an important aspect of employee life across Latin America. In Mexico, our employees registered 60,889 volunteer hours in 2012, the highest contribution among all countries in the region. Five GE Volunteer Councils are active in Mexico, and each one is managed by local employees who are responsible for providing guidance to employee volunteers and developing projects with local organizations.

Mexico that received this distinction for hiring elderly people and people with different capacities. The plant has a long history of excellence, receiving more than a dozen awards since 2005. The plant also won GE’s HealthAhead certification in 2012 for its commitment to and performance in employee health and wellness.

We also focus on increasing the gender diversity of our workforce in Mexico. GE’s Women’s Network (GEWN) was created in 1997 and is a voluntary initiative that aims to help women working at GE advance their careers. Today, we have more than 150 GWEN hubs in 43 countries. One of the largest GEWN hubs in Mexico is the one in Querétaro, where we provide scholarships to support women pursuing baccalaureate or graduate programs in engineering and computer science. This initiative is all the more relevant as gender economic inequality remains a challenge in Mexico. The World Economic Forum 2011 Global Gender Gap Report ranked Mexico 89th out of 135 countries for gender parity, making it one of the least gender balanced countries in North America. Today, women represent more than 27 percent of our total workforce in Mexico.

COMMUNITIESGE’s business depends on the infrastructure, skills, and institutions of stable, prosperous societies and healthy environments. To succeed, we need to be part of building the communities in the locations where we operate.

Volunteerism is an important aspect of employee life across Latin America. In Mexico, our employees registered 60,889 volunteer hours in 2012, the highest contribution among all countries in the region. Five GE Volunteer Councils are active in Mexico, and each one is managed by local employees who are responsible for providing guidance to employee volunteers and developing projects with local organizations.

In 2011, GE celebrated 115 years of operation in Mexico with the “Celebrating 115 Years of Good Deeds” campaign. The goal was to achieve 115,000 hours of volunteering through three thematic projects: build 115 homes in poor communities, read 115,000 hours with families, and improve lighting for 115 schools. This campaign was one of the most ambitious volunteer initiatives in the country to date and was carried out in partnership with GE

People

Page 7: Mexico Sustainability Profile – English

With almost 80 percent of the Mexican population living in urban areas, Mexico’s 70 largest cities produce more than 84 percent of the country’s Gross Domestic Product (GDP), but also three-quarters of its greenhouse gas emissions.

Recognizing this challenge, we are working to track and reduce the impacts of our operations and supply chain by managing our environmental performance using proprietary EHS management systems and Supplier Responsibilities Guidelines (SRG). We also recognize the significant impacts we can make through our products in use. For this reason, we focus on developing technologies and solutions to reduce our customers’ environmental footprints. We believe that these efforts will also provide economic benefits to Mexico in the form of cost savings and employment opportunities.

WATERWater resource management is one of the most

urgent environmental issues in Mexico. With population growth and internal migration, water resources are over-exploited in the northern and central parts of the country, where 77 percent of the population lives and 85 percent of the GDP is generated. Water quality is also deteriorating, with only 35 percent of municipal and 15 percent of industrial wastewater treated.

In response to water scarcity and quality issues, GE promotes wastewater reclamation, treatment and recycling technologies, mainly for industrial applications and public utilities. In Tijuana, Baja California, we are supplying water treatment equipment for Mexico’s first municipal water reuse plant, which is helping solve infrastructure and housing development needs in the area. Baja California is facing major water scarcity problems, which heightens the need for water reuse programs and technologies. Our water treatment equipment provides a system that reuses 100 percent of wastewater and helps the plant meet local water

PlanetPerformance Highlights

employees, their families, NGO’s, and members of the benefitting communities. All five GE Volunteer Councils in Mexico participated, and in total, we provided approximately 125,000 hours of volunteer work during the campaign that continued until mid-2012. We also exceeded our reading target by 88 percent, and reached over 30,000 individuals throughout Mexico. The campaign contributed to the creation of a national movement with private and public companies to provide more than 7 million reading hours. For our efforts, we received GE’s Impact Award, which recognizes exemplary employee volunteer projects managed by GE Volunteers Councils around the world every year.

Beyond the campaign, GE Aviation and Energy volunteers in the state of Querétaro logged more than 10,600 hours in 2012, supporting projects such as: building houses for 10 homeless families; delivering Three Wise Men presents, a Mexican tradition; collecting school supplies; tutoring more than 750

kids at four elementary schools through the Junior Achievement program; and retrofitting 13 schools with more than 767 GE energy-saving light bulbs.

Elsewhere, our GE Capital volunteers contributed more than 7,200 hours in 2012, supporting projects that benefitted more than 8,400 individuals in the communities where we work. GE Capital worked with the NGO Roof (“Techo”) to build homes for families living in extreme poverty. Since 2010, our GE Capital volunteers have built 58 homes and one community center, benefitting more than 320 people directly.

In total, nearly 4,900 out of 10,500 GE Mexico employees, or 47 percent of the total workforce, volunteered in 2012, contributing more than 60,000 hours and conducting 127 volunteer events with 19 local organizations. The GE Foundation also continued to provide much needed funds and support in 2012, donating US$510,132 to four partners in the areas of health and education.

Planet

12 13

People

Page 8: Mexico Sustainability Profile – English

quality requirements. Today, the plant provides water for 3,200 families, irrigates green spaces in Tijuana, and replenishes the aquifer. With the success of this project, other states in Mexico, such as Guanajuato and Guadalajara, are interested in deploying this water reuse technology.

ENERGYAs a global leader in supplying wind power in 2012, GE provided Comexhidro with eight 2.75-megawatt wind turbines, which will be used to generate clean energy for public lighting in Santa Catarina and five other counties in the state of Nuevo León. Comexhidro is a company that develops power-generation projects, including the construction and operation of wind farms. The project will combine GE technology with Comexhidro’s local knowledge to provide sustainable lighting to the communities of Nuevo León. The project will also demonstrate the local government’s commitment to accelerate the generation of clean energy and combat climate change through private investment, a significant milestone for Mexico.

GE is also making strides in promoting the use of biofuels. Along with the Mexican Communications and Transportation Department, Aeroméxico, and Boeing, GE announced in 2011 the world’s first commercial transoceanic flight to use bio-jet fuel. The flight, equipped with GE90 engines, departed from Mexico City to Madrid with 250 passengers, using 26,000 liters of biofuel containing a mix of 25 percent synthetic paraffinic biokerosene (BioKPS) from jatropha curcas, a plant species native to Mexico, and 75 percent traditional jet fuel.

We believe that forming partnerships with other companies is an effective way to scale new energy technological solutions across Mexico. In 2012, then-President Felipe Calderón celebrated the development of Mexico’s largest cogeneration power plant, which will be constructed near Villahermosa, Tabasco, through a joint venture partnership with Abengoa. Following nearly 10 years of planning, design, and construction, the 300-megawatt plant will supply power and steam to the Nuevo Pemex gas processing complex, directly providing 55 percent of its overall power demand with cleaner energy.

ENVIRONMENT AND RESOURCE MANAGEMENTEnvironment and resource management at GE is led by our EHS team and relies on GE’s global Environmental Excellence management system. This system is based on 182 requirements in six areas: air, water, waste, waste and materials shipping, chemical content, and general environmental management, compliance, and training practices. In 2012, GE Mexico won the first Environmental Excellence certification in Latin America with its GE Energy Management EDESA site in Saltillo. We are now looking to certify two additional sites in 2013.

Nineteen of the 24 GE sites in Mexico are also certified by the Mexican Environmental Protection Agency, a voluntary government standard. All GE sites in Mexico have active recycling programs. In 2012, we recycled 13 tons of plastic, 3 tons of aluminum, and 93 tons of paper.

Another example of our commitment to best-in-class environmental standards is our efforts at GE Nogales plant, which has received the Clean Industry Certification, a distinction provided by Mexico’s federal prosecutor for environmental protection (PROFEPA). The plant’s leadership also made a commitment to serving as a model and mentor for its customers and supply chain partners.

Performance Highlights

Planet

14

Notes to Data:

1. Energy Consumption includes all fuels and electricity used by all sites in the listed country.

2. Change in Energy Consumption is for all reasons including energy efficiency projects, changes in manufacturing processes, and changes in production driven by market conditions.

3. Energy Intensity is the Energy Consumption divided by the industrial revenue for the listed country.

4. Water Withdrawal is the total site water supplies used by Criteria Sites (sites that used 15 million gallons of water per year at any time since 2006) in the listed country.

5. Change in Water Withdrawal is for all reasons including water use reduction projects, changes in manufacturing processes, and changes in production driven by market conditions for Criteria Sites.

6. Greenhouse Gas Emissions are the sum of Direct (Scope 1) and Indirect (Scope 2) emissions for all sites in the listed country.

7. Change in Greenhouse Gas Emissions is for all reasons including Greenhouse Gas reduction projects, changes in manufacturing processes, and changes in production driven by market conditions for all sites in the listed country.

8. Greenhouse Gas Intensity is the Greenhouse Gas Emissions divided by the industrial revenue for the listed country.

Planet

15

Page 9: Mexico Sustainability Profile – English

conjunction with academic institutions in these areas. In addition, we invested nearly 8,000 continuing education hours and taught 40 technical classes in 2012.

In Veracruz, we are driving economic growth and creating new employment opportunities by supplying power to Ethylene XXI, a polyethylene plant complex that is projected to open in 2015. Mexico currently imports more than 80 percent of the polyethylene it uses in manufacturing, packaging, and other commercial and industrial applications. Once in operation, this plant is expected to produce more than one million tons of polyethylene per year, reducing the need to import this plastic material.

Through the installation of our GE Power Island, a self-contained, highly-efficient energy solution that recycles steam and heat to generate power, we will help reduce electricity demand and streamline operating costs, allowing Ethylene XXI to be more competitive with imported plastics manufacturers. Our solution is also independent from the federal power system, which will help meet the plant’s production schedules without power interruptions. This will be the first ethylene complex in Mexico and one of the largest on the continent, and it is expected to create 9,000 jobs during construction and another 3,000 direct and indirect jobs once operations commence in 2015

PUBLIC POLICY & PARTNERSHIPSHelping build sound public policies and public-private partnerships is critical to the sustainability of our business in Mexico.

In 2012, we made an agreement with the Government of Querétaro to seek new opportunities

As the second largest economy in Latin America with a GDP of US$1.2 trillion in 2012, Mexico continues to experience steady economic growth, but socio-economic inequalities remain wide, with an overall poverty rate of 46 percent in 2010.

INFRASTRUCTUREIn partnership with the municipality of Othón P. Blanco in the state of Quintana Roo, we are replacing traditional lighting on public roads with cutting-edge LED technology. This pioneering initiative represents the largest LED public roadway lighting infrastructure project in Latin America and will generate an estimated energy saving of 51 percent for the city. The project also supports the Mexican government’s Special 2010-2012 Climate Change Program, which aims to reduce the municipality’s energy usage and carbon footprint. The resulting GHG emission reduction would be the equivalent of taking the 40,000 cars in Othón P. Blanco off the roads for a 10-year period.

Another advantage of LED lighting is its long life and the possibility of directing light to specific areas, reducing light pollution and glare. In addition, LED’s offer a light that is brighter and more uniform, allowing improved visibility and color quality. All this translates to reducing traffic interruptions and increasing public safety. When completed, this project will be one of the largest installations of public lighting infrastructure using LED technology in Mexico and Latin America.

JOB CREATION & SKILLS DEVELOPMENT Despite a rise in unemployment between 2007 and 2011 to 5 percent (of the population actively looking for employment), according to the OECD, some 42 percent of Mexico’s employers reported recruitment difficulties, suggesting that more must be done through the education system and by employers themselves to provide training and meet the skills requirements of the local labor market.

The GEIQ has made local talent development a priority. As the center is dedicated to the design of aircraft turbines and power-generation technologies, we are sponsoring nearly 1,500 engineers to work in

Economy

12

Economy

17

Economy

16

Performance Highlights

for collaboration in such areas as innovation, talent generation, corporate social responsibility, and climate change. Through this partnership, we hope to share our knowledge and expertise through seminars, courses, and workshops to help Querétaro strengthen its growth in a sustainable fashion.

We also support sound public through thought leadership. We are a member of the B20 Anti-Corruption Committee, an international initiative focused on promoting practices to improve transparency and anti-corruption through measures that companies and governments can use voluntarily. The B20 is made up of executives from global companies and worldwide recognized experts and scholars. As a member of the B20 Anti-Corruption Committee, we have used our expertise in transparency and anti-corruption to inform recommendations that were presented to then-President Felipe Calderón during the Mexico 2012 B20 Summit.

LOOKING AHEAD We will continue our sustainability efforts as an integral component of GE’s business growth in Mexico. We will also develop commitments and goals for the sustainability issues identified as strategic to GE, and establish a governance structure to support the integration of GE Foundation and GE Volunteers activities across the region.

While there is still much work ahead of us, we believe that by pursuing these efforts, we will achieve our ambition to be Mexico’s leading partner in infrastructure, innovation, and technology, and contribute to the country’ sustainable growth.

Page 10: Mexico Sustainability Profile – English

Masthead

GE Latin AmericaPublic Relations and Communications

Director Alexandre Alfredo

Editorial coordination GE Sustainable Development Latin America Department

Business for Social Responsibility (BSR)

Graphics and Layout Mill Publicitá

Images – GE Media Central

Printing – VIP graphics and publishing

Print run – 500

Date of publication – 10/10/2013

Contact InformationMEXICO HEADQUARTERSAv. Antonio Dovali Jaime, nº 70 Col. Santa Fe, Mexico City, DF01210 Mexico T +52 (55) 5257 6200

LEARN MORELearn more about GE Citizenship:www.gecitizenship.com

www.gefoundation.com

www.gecitizenship.com/businesses-regions/regions/latin-america

Find detailed news and information on GE and its businesses in Mexico:www.ge.com/mx

OMBUDSPERSON To report concerns related to compliance with the law, GE policies, or government contracting requirements, contact our Latin America Global Growth Operations (GGO) Ombudsman, Reyna Torrecillas at:

Reyna TorrecillasChief Compliance Officer Latin America GE Global Growth & Operations

Av. Antonio Dovali Jaime nº 70Col. Santa Fe, Mexico City, DF01210 MexicoT +52 (55) 5257.6400

[email protected]

FEEDBACKYour feedback on GE’s progress is appreciated. Please email comments or questions to

[email protected]

Contact

1918

Economy

Page 11: Mexico Sustainability Profile – English