Primera parte Pacto Global 2019 Inglés · slow down, with devastating eﬀects in developing countries. As stated by the WHO, this is a crisis in which countries must take ... stores,

As I write this message to our stakeholders, we are all in the midst of one of the most important challenges in the recent history of humanity: The COVID-19 Pandemic declared on March 11, 2020, by the World Health Organization.

This viral disease is seriously impacting the public health system in practically every country, and causing a significant world-wide economic slow down, with devastating effects in developing countries.

As stated by the WHO, this is a crisis in which countries must take coordinated actions among governments, civil society, international cooperation, and private sector, to jointly carry out prevention and support measures to ensure the timely and inclusive care of all those in need.

Our commitment with the health, safety, and development of our team members is more evident today than ever, through the adoption of the strictest and most advanced preventive measures for them and for their families.

This humanitarian crisis requires solidarity. For this reason, we made the decision to focus our support on three areas: Building suitable hospital infrastructure to care for patients through the donation of medical equipment; food and nutrition security; and supporting small businesses.

Undoubtedly, the first response should be focused on addressing the health emergency; however, we must coordinate and innovate our efforts to respond to the economic crisis that is deepening inequalities and increasingly affecting vulnerable populations. We believe that the principles of the United Nations Global Compact prevail now more than ever, and through this advanced-level Communication on Progress Report we renew our commitment to respect Human Rights, labor standards, environmental sustainability, transparency, and the fight against corruption.

At the end of 2019, we reviewed our sustainability vision and decided to give priority to strengthening social fabric through programs that will contribute to the multidimensional development of our employees, strengthening of small businesses, especially the small neighborhood stores, and the certification of the ethical trade principles of agricultural producers that are part of our supply chain.

We also defined a more ambitious route to reduce our environmental footprint. This route includes the commitment to support and participate in the circular economy, reduction of emissions, and take all the necessary actions to achieve water neutrality.

Likewise, the Anti-Bribery Management System (SGA for its initials in Spanish) was implemented as a fundamental pillar of transparency and fight against corruption. SGA seeks to generate awareness and active collaboration with the different stakeholders and with our business partners on the importance of not participating in any act of corruption. The System's main objective is to identify, control, monitor, detect, and investigate situations of corruption that could arise in the company. Its implementation and compliance are mandatory.

This decade began as the Decade of Action for the Sustainable Development Goals, and I believe we should not abandon such call from the United Nations Member States to put an end to poverty, protect the planet, and guarantee the enjoyment of peace and prosperity. However, we should be aware that the extent of the crisis we face compels us to be innovative, disruptive, resilient and, above all, to be aware of the new reality before us.

This is a time for solidarity, togetherness and strength to undertake new challenges. Our commitment is to continue to provide local humanitarian aid, strenghten our value chain, our employees and small businesses, and join collective actions that will contribute to the inclusive economic recovery.

Communication on Progress2019U n i t e d N a t i o n s G l o b a l C o m p a c t












Table of Contents

01Letter from ourExecutive Presidentpp. 5-7

02About UsMission & Visionpp. 8-12

06Ethics and the FightAgainst Corruptionpp. 28-41

14Health and Safetyin the Workplacepp. 109-126

15EnvironmentalSustainabilitypp. 127-152

17External AssuranceStatementpp. 189-192

18GRI Content Indexpp. 193-202

19UN Global CompactPrinciples Indexpp. 203-204

16Partnerships Contributingto SustainableDevelopmentpp. 153-188

07Risk Managementpp. 42-46

05Committees Appointedby the Board of Directorspp. 25-27

11Consumerspp. 58-63

12Supplierspp. 64-72

13People & Managementpp. 73-108

08Value Chainpp. 47-49

Stakeholders and Material Issues

09

pp. 50-54

10Clientspp. 55-57

03Our Portfoliopp. 13-17

CorporateGovernance

04

pp. 18-24

C O M M U N I C AT I O N O N P R O G R E S S 2 0 1 9












What does it mean to be passion-driven?Being passion-driven means celebrating each victory and undertaking each challenge with the best attitude, inspiring our people, our clients, and the community with our values. We face each day with passion and joy, giving it our best, while we enjoy what we do.

We Are a Passion-Driven Company













A Letter from OurExecutive President

GRI 102-1, 102-10, 102-14Global Compact - Criterion 19

01













6

L E T T E R F R O M T H E P R E S I D E N T

Letter from the President












G U AT E M A L A 2 0 1 9

Carlos Enrique Mata I Executive President

7












L E T T E R F R O M T H E P R E S I D E N T

M i s s i o n & V i s i o nAbout Us02GRI 102-2, GRI 102-3, 102-4, 102-6, 102-7 102-10, 102-16GRI 203-2, 103-1, 103-2, 103-3Global Compact - Principle 1 Global Compact - Criterion 13













About UsWe are a multi-Latin beverage company founded in Guatemala in 1885. Our portfolio is the largest in the region, offering our clients and consumers a beverage product for every occasion and lifestyle.

MissionWe are a competitive team, creating strong relationships with our clients and consumers through the best value propositions.

VisionTo be the best beverage company of the Americas, creating sustainable value, offering consumers the best experiences with our brands, and contributing to a better world.

A B O U T U S

who lead operations in different countries, to the culture of meritocracy, to a sustainable process-based management, continuous improvement, and especially thanks to our strategic partners: PepsiCo, Ambev and Beliv, who share their best practices with us.

Our growth and development have been possible thanks to the talent of our people and the passion of young people of different nationalities

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VA L U E S












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We are passionate about what we do,

we work with energy and a sense

of urgency

We take no shortcuts, we always do the

right thing

Creating new and better

opportunities

We seek continuous learning and achieve

results as a team

We guarantee sustainable results

through management and

compliance processes and

routines

We are entrepreneurs, we believe everything is possible and we

make it happen

Passion Discipline We havebig dreams

We areoutstanding

peopleWe areownersIntegrity

Beverageproduction

National Dry, Canadá Brooklyn Bottling, EEUUCott, EEUUIPP, MexicoValle Redondo, Mexico Jaumave, Mexico P.M.L, MexicoBelticos, MexicoValle Redondo, Mexico Envasadora Aguida, Mexico Coco Colima, Mexico

NORTH AMERICA

Mariposa, Guatemala Cuyotenango, Guatemala Livsmart, El SalvadorLa Nacional, Nicaragua La Reyna, Honduras Naturalísimo, Guatemala Glad, GuatemalaDist. De Alimentos Congelados, El Salvador

CENTRAL AMERICA

Cott, United KingdomSan Benedetto, Spain

EUROPE

Spain

EUROPE Agua de los Glaciares, ColombiaLácteos San Antonio, Ecuador Machachi, Ecuador Guayaquil, EcuadorTropical, EcuadorCuenca, Ecuador Milagro, Ecuador Machala, Ecuador Sullana, Peru Huachipa, Peru Selva Industrial, Peru Lules, Argentina Chajarí, ArgentinaAgroandina, Argentina

SOUTH AMERICA

cbc acrossthe World

Samba Brewery, Trinidad & Tobago Pepsi Cola Puerto Rico Distributing, Puerto RicoPepsi Cola Jamaica Botting Company Limited, JamaicaUnibev, Jamaica

THE CARIBBEAN

New YorkMiami Mexico

NORTH AMERICA

Guatemala El Salvador Honduras Nicaragua Panama

CENTRAL AMERICA

Ecuador Peru Uruguay Argentina Colombia

SOUTH AMERICA

Puerto Rico JamaicaDominican Republic

THE CARIBBEAN

Corporate offices

Offices

Headquarters

+9,000EMPLOYEES16 COUNTRIES

COMMERCIAL OPERATIONSCo-packers19

18

C B C A C R O S S T H E W O R L D

We have headquarters in each of the countries where we operate. This data can be found on our cbc web page: http://cbc.co/contacto/

Our commercial operations grew from our presence in 15 countries, in 2018, to our presence in 16 countries, in 2019. We have increased the number of plants from 17 to 18, and co-packers from 16 to 19. Today, we have more than 9,000 employees worldwide.

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ProductionPlants












We export toFour ContinentsEspecially from the Beliv portfolio

Belize GuatemalaEl Salvador Honduras Costa Rica Nicaragua Panama

CENTRAL AMERICA

Colombia Ecuador Peru Uruguay Paraguay Chile Argentina

SOUTH AMERICA

Trinidad & TobagoDominican RepublicPuerto Rico JamaicaHaití

THE CARIBBEAN

Mali Senegal GambiaGuinea- Bisáu Guinea Conakry Sierra Leone Burkina Faso Ivory Coast Ghana

AFRICA

China

ASIA

CanadaUnited States (Florida, New Jersey, New York, Maryland, California, Texas)Mexico

NORTH AMERICA

Spain Netherlands England

EUROPE

In 2019, our exports have expanded to four continents.

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C B C A C R O S S T H E W O R L D

OurPortfolio03GRI 102-2, 102-6, 102-12


P O R T F O L I O

PepsiCo is one of the largest food and beverage companies in the world, with annual sales exceeding 67 billion dollars. The company manages important global brands such as Pepsi, Gatorade, 7up, Lipton, Frito Lay and Quaker.

We have added important PepsiCo global brands to offer the most diverse beverage portfolio in the region. Our brands are available to our over 650 thousand customers.

Since 1942 we are Pepsico bottlers and, because of our operational excellence, we received the Global Bottler of the Year Award in 2012. We take Pepsico’s best operating practices into account, especially in the processes that guarantee sustainability. We are also inspired by the Winning with Purpose vision, which has allowed us to jointly develop social and environmental programs.

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Thanks to its strategic partnership with Ambev, part of the world’s largest brewing company, ABInBev Group, cbc is able to offer a wide portfolio of renowned beer brands to its clients and consumers in Guatemala and other Central American countries.

P O R T F O L I O

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GRI 102-2, 102-6

Beliv is an important cbc business unit that focuses on the development, production and marketing of nutritional beverages, exporting its products to over thirty-five countries worldwide. This is one of the fastest growing companies in the region. Beliv focuses its entire experience on creating products and brands through innovation and functionality, to renew or create new categories. Beliv's vision is to "Lead the growth of healthy beverages".

P O R T F O L I O

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Güitig is the miracle of nature from Ecuador. It received the Monde Selection gold Quality Award in 2019, in the Waters category.

The Tesalia cbc team is an example of the consistant effort that allows the quality of Güitig and Tesalia waters to transcend borders and receive worldwide recognition.

KNOWN FOR ITS QUALITY

Naturally SparklingMineral Water

P O R T F O L I O

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CorporateGovernance04GRI 102-5, 102-18, 102-45


Board of Directors

C O R P O R AT E G O V E R N A N C E

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The Board of Directors continues under the same structure of nine members: four representatives from GEMCORP, two from PepsiCo, and three independent members with a right to speak and to vote, elected based on their knowledge, professional background and experience.

The three independent members are selected through a screening process incorporating international standards, performed by a renowned global-level talent recruitment firm. Independent members are evaluated annually.

cbc financial statements include all business units. The management system allows for all operational processes and management indicators to be standardized for the companies that are part of the Group. This is a corporate-level report.

Board of Directors

Pepsico GEMCORP IndependentMembers

Director Director Secretary Chairman Vice-chairman Director Director Director Director

BelivOrganizationalStructure

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CEO BelivCarlos Sluman

MarketingFrancisco Pagés

CommercialMario Bertini

R&D / Co-PackingClayton Santos

Legal& Corp. Affairs

Luis P. ValladaresNew Business

Ricardo Kiehnle Finance

Pedro GuzmánPeople

& ManagementCarlos Navarro

Board of Directors

Executive PresidentCarlos Enrique Mata


cbc maintains its corporate structure.

Caribbean Central America South America

Pepsi ColaPuerto RicoDistributing(Beverages)

Pepsi ColaJamaica Bottling

(Beverages)

cbc Peruana(Beverages)

Tesalia Springs(Beverages)

Beliv

AmBev C.A.(Beer)

Mariposa(Beverages)

Guatemala Honduras Nicaragua El Salvador El Salvador Peru Ecuador ArgentinaJamaicaPuerto Rico

Mariposa(Beverages)

Livsmart(Juices)

La Reyna(Beverages)

Nacional(Beverages)

CorporateStructure

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The Corporate Governance Policy sets out the guidelines that allow cbc and all its affiliates to fulfill, improve and continuously review its governance rules, steadily maximizing the value of the Company. It takes the shareholders interests into account and ensures the independent judgment of the Board members, as well as respect for the internal regulations, to comply with the best practices in Corporate Governance.

The Policy is aimed towards all legal entities of the Group and joint ventures and other partnerships, in which cbc participates as a controlling entity.

It is the responsibility of all cbc executives to comply with the guidelines of this policy according to their roles, duties and responsibilities.

The cbc Board of Directors meets quarterly, and whenever an extraordinary meeting is convened, as established by the guidelines of the Shareholders’ Agreement (SHA).

It is the duty of the Board of Directors to appoint the Executive Committees required for cbc’s operations, defining their duties and responsibilities, and verifying their compliance.

Corporate GovernancePolicy

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Managing strategy for the Organization.

Ensure compliance with the General Assembly resolutions.

Authorize agreements and transactions in the interest of the Organization and that require its approval under legal and contractual provisions.

Approve the annual budget and business plan of the Organization.

Roles, Duties and Responsibilitiesof the Board of Directors


The Board of Directors has the exclusive responsibility and authority to appoint the members of each Committee, review its objective, authority, responsibility, and scope. The Board of Directors is in charge of defining the Chairperson responsible for coordinating the activities of each Executive Committee.

It is the Board of Director's duty to assign the areas responsible for defining policies and regulatory procedures, and those areas that must ensure their fulfillment. Compliance standards are those that should be executed according to legal, regulatory, tax, environmental and labor requirements, established by the countries where cbc operates, in addition to internationally accepted practices enforced as part of such agreements. Equally important are the international standards of quality, food security, health and occupational safety, among others.

The Board of Directors will appoint those responsible for defining and updating policies and procedures of general compliance and implementation for all the companies of the Group.

The Board of Directors may also appoint the areas responsible for defining and updating operational policies and procedures targeting the consistent and orderly operations of the Company. This responsibility has been assigned to the Excellence Centers.

Vice Presidents, Officers, Managers and Directors are in charge of ensuring that their teams know and understand their roles and duties, according to the policies relating to their position. Likewise, Officers and area managers must ensure that all employees reporting to them are trained at least once a year on policies and processes related to their positions.

ExecutiveCommittees

CorporatePolicies

2 3


ClustersOrganizationalStructure

2 4

Luis Carballo

CEO cbc Ziad Nahas

José Sanabria Juan Pablo Mata Antonio Travieso Anibal Mujica

Board of Directors

Executive PresidentCarlos Enrique Mata

Internal Audit Magda Túnchez

Puerto Rico Jamaica Guatemala Honduras Nicaragua El Salvador Peru Ecuador


Committees Appointed bythe Board of Directors05GRI 102-18, 102-20Global Compact - Criterion 20


Committees Appointed by the Board of Directors

The Board of Directors has the exclusive authority to appoint the members of the different Committees, as well as to review their objectives, responsibilities and scopes. These committees and their roles remain unchanged.

Committees appointed bythe Board of Directors are:

01 People & ManagementCommittee

02 Mergers & AcquisitionsCommittee

03 Internal Audit Committee

05 Gobal and SpecificPolicy Committee

06 Asset InvestmentCommittee

Other Committees

04 Risk & Finance Committee

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C E N T E R S O F E X C E L L E N C E

Apex

Apex is a Business Unit that specializes in promoting changes in different companies under the following areas: Run, Transform & Integrate the Business. The Excellence and Support Centers generate these changes and they are part of APEX.

The team carrying out the new business unit continues in 2019 with consulting and development support processes for growth, with the help of highly qualified employees with vast experience. These are processes that incorporate the best practices and the best technology worldwide. Apex continues to support the enhancement of cbc’s culture by streamlining the generation of value and sustainability and excellence processes, with the implementation of indicators that enable continuous improvement in the following areas: Sustainability, Social Dialogue and Corporate Image; Finance; Culture of Excellence and Talent Development; Legal Area; Commercial Excellence; Supply and Environmental Compliance Excellence; Logistics Excellence; Route Engineering; and Information Technology Support Center.

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Ethics and the FightAgainst Corruption06GRI 102-25GRI 205-1, 205-2, 103-1, 103-2, 103-3GRI 408-1, 103-1, 103-2, 103-3GRI 409-1, 103-1, 103-2, 103-3Global Compact - Principle 1, 4, 5, 6, 10Global Compact - Criterion 3, 4, 5, 12, 13 14


The cbc Code of Ethics contains principles and rules of conduct governing the actions of all board members, senior management, and employees in general.

All our business and professional activities are based on the principle of integrity, and our actions must be carried out with honesty and transparency.

It specifies how each of our employees should conduct themselves and their relationships with co-workers, suppliers, clients and communities in countries where cbc operates.

The cbc Code of Ethics provides our team members, suppliers and public in general with an official document that specifies our commitment to responsible, ethical, transparent and respectful actions.

Every supplier who renders services or supplies goods to cbc must adhere to the Code of Ethics, to its principles and rules of action.

Codeof Ethics

The Ethics Committee is responsible for Code of Ethics communications and training. Moreover, it is in charge of managing and ensuring the proper functioning of complaints and inquiries channels relating to breaches to the Code of Ethics by cbc officials, employees or suppliers, to facilitate investigations that enable the corresponding measures to be taken and suggest the applicable sanctions and recommendations to the corresponding areas.

The Ethics Committee reports to the Board of Directors through the Audit Committee, and is managed by the Compliance Director. This Committee also evaluates and manages Code of Ethics violations and other internal policies, taking the necessary measures in cases of violations.

The Ethics Committee is made up of five people from different departments in the Company, including its Executive President, who has an advisory and support role in the dissemination and implementation of the Code of Ethics. Members of the Committee are appointed by the Executive President, and in turn, coordinated by the Compliance Director.

The Committee defines the communication guidelines for the Code of Ethics and the corresponding training of all cbc and third-party employees. It is in charge of managing and ensuring the proper functioning of channels that allow employees or stakeholders to make inquiries or file complaints regarding breaches to the code.

It reports to the Board of Directors through the Audit Committee; its duties also include conflict, dispute and breach assessment, the establishment of sanctions and action plans to prevent violations to the Code of Ethics. The Committee is also responsible for reviewing and promoting policies and procedures to strengthen transparency, anti-corruption and anti-fraud mechanisms.

EthicsCommittee

E T H I C S A N D A N T I - C O R R U P T I O N

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Responsibilities

cbc’s EthicalStandards

The Code of Ethics provides general guidelines and information to our Board of Directors, employees, suppliers and the general public regarding our commitment to responsible, ethical, transparent and respectful actions. The People and Management and the Compliance Departments, management and directors of each area, are responsible for promoting knowledge and dissemination of the Code and responding to queries regarding its interpretation.

The Code of Ethics considers the following standards, among others:

Integrity and Rules of ConductAll business and professional activities are based on the principle of integrity. We act with honesty and transparency.

InclusionWe develop inclusive business and work practices, free of any type of discrimination.

Equal Employment OpportunityAll our personnel selection practices are based on equal opportunity. Our team members develop their career plan based on their own merits and on objective assessments.

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We repudiate forced labor; and therefore demand that our employees and suppliers strictly observe this principle. We understand that forced labor is any work or service which people are forced to do against their will, under threat of punishment. This refers to bonded labor, modern slavery and any form of human trafficking. We have a zero-tolerance policy regarding the use of any physical punishment or threats of violence, intimidation or any other forms of physical, sexual, psychological, or verbal abuse as a method of discipline or control in the workplace.

Abolition ofChild Labor and Forced Labor

All cbc business and professional activities are carried out under strict compliance with the laws and regulations in each of the countries in which we operate. All actions are carried out under strict respect for Human Rights included in the Universal Declaration of Human Rights. We recognize that the inherent dignity and the equal and inalienable rights of all members of the human family is the foundation of freedom, justice and peace in the world.

Respect forHuman Rights

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Labor RightsEnforcementMeasures

All our business and professional activities are carried out under strict compliance with current laws and regulations in each of the countries where we operate. We respect labor laws and International Labor Organization conventions, as set out in our Code of Ethics and our Compliance Policy.

With the Outsourcing Security Requirements Manual the contracting company agrees to comply with the safety and health requirements described by the Organization, and with labor laws and in-house procedures of the Company. The contracting company signs a letter of intent stating that it understands the Outsourcing Security Requirements Manual and authorizes cbc to carry out any compliance review or verification.

We Repudiateand Condemn Harassment

Ethics and integrity are our fundamental pillars and thus we repudiate and condemn any abuse or harassment, especially sexual and workplace harassment. We condemn workplace harassment as a form of repeatedly engaging in hostile behavior or attitudes that adversely impacts the dignity of an employee, regardless of whether this behavior is from a person who is a supervisor or a co-worker.

Complaints can be made through the Company’s Ethics Hotline, through which the appropriate measures are taken, including reporting complaints to the competent bodies of each country, as the case may be.

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Protecting ConfidentialInformation and Assets

Confidentiality

We are committed to exclusively requesting and using data from our team members that are necessary for the effective management of business activities, always according to law.

At cbc, we respect confidentiality and promote the responsible and professional use of confidential information.

Asset Protection

We are always searching for the best protection for cbc’s equity. This includes its assets, rights and all types of information. Assets are exclusively used for the corresponding professional duties.

Using and ManagingFinancial and Non-FinancialInformationAll financial information and results of operations are recorded according to the legal requirements and the generally accepted accounting principles, to ensure the veracity, integrity, accuracy and precision of such.

All employees are required to protect the Company’s non-public information, and not disclose it to any person outside the Company. This includes financial, commercial and patent information, marketing plans, etc.

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At cbc, we are committed to carrying out our businesses and activities in such manner that decision-making, in all areas, is objective and not influenced by personal interests. A Conflict of Interest is understood as any given situation in which a person’s private interests interfere or appear to interfere, with the fulfillment of their work-related duties and when such personal interests improperly influences the business judgment, decisions or actions in the performance of such person’s role.

Passing judgments, making decisions or actions when the employee faces any conflict of interest may hinder the objective work performance in the Company. It may also have legal and regulatory implications.

All cbc employees must avoid conflicts of interest; in other words,, they must take the necessary steps to ensure that a conflict does not occur.

Moreover, each cbc employees must assess and report any real or potential conflict of interest that might exist in the execution of their duties.

In the event of any doubt or conflict, the person or persons must immediately inform the Compliance Area of such situation through the form provided on the platform, so that the relevant assessments can be performed according to the Policies and Code of Ethics.

Conflictof Interest

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Ethics Hotline

In 2019, cbc reviewed the complaints system and transition from a complaint channel to the ethics hotline. It carried out an internal campaign to reinforce the Company’s culture of ethics and the use of the platform. These actions increased the user’s trust in the use of this tool. In 2019, 157 complaints were filed.

Any employee or external person who knows of or suspects that the Code of Ethics has been breached must inform his superior authority and directly report such breach to the Compliance Area, who is in charge of providing guidance to the employee to report such breach through the Ethics Hotline.

Complaints may be submitted by e-mail, through the web platform or the ethics hotline, or by dialing the phone numbers enabled for this purpose.

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Anonymous complaints will be allowed; however, dialogue and trust will be encouraged in order for the plaintiff to provide his or her personal data. In any event, the necessary measures will be taken to avoid retaliation against those making complaints.

Likewise, while the corresponding investigation takes place, confidentiality will be maintained by those assigned to the investigation.

cbc sanctions false complaints upon proving an intention to harm the accused person. Employees who have been investigated due to complaints, will be notified that the Company will not allow any type of retaliation against co-workers, clients, suppliers or any other person that the employee suspects may have reported him.

Attitudes proven to be in retaliation for a complaint will face immediate dismissal.


CompliancePolicy

This policy is geared towards all affiliate and subsidiary operations where cbc operates, as well as new operations or any business expansion, and towards related third-parties, and sets out the guidelines for compliance with internal and external rules regulating the development of cbc’s operations.

cbc Compliance Standards

cbc respects and complies with the legislation of each country in which it operates, adhering to the compliance of regulations, and therefore, requesting its employees, suppliers and customers to comply with the external and internal rules that apply within the operation.

All internal rules are published on the intranet and updated once a year. External rules must be monitored by the areas involved in their compliance and informed of for their execution and compliance. Relevant changes in the laws and regulations affecting the Company’s course of business must be monitored and published by the responsible areas.

All cbc employees are required to comply with parameters established in the Code of Ethics, as well as the internal and external rules; therefore, there is no justification for any non-compliance with the guidelines or standards. cbc suppliers must comply with the Code of Ethics, compliance will be monitored by the Purchasing Area.

Free Competitioncbc is committed to guarantee the compliance of laws and rules governing free competition and antitrust and expressly prohibits any practice restricting free competition.

We do not Accept Corrupt PracticesAny corrupt practice by any of our partners, employees, suppliers or customers in the development of our employment and/or business relationship will not be tolerated and will therefore be reported.

Environmental Law cbc complies with environmental law, and each of the operations must design policies and procedures that enable the compliance of such standards, including updates to the processes or controls for compliance whenever environmental standards change.

In 2019, the Company did not receive any significant non-monetary fines or sanctions for any breach of environmental laws or regulations.

Financial Information Financial information and results of operations comply with the international accounting standards and local law requirements in each of the countries.

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Anti-CorruptionPolicy

The Fight AgainstCorruption

At cbc, we aim to be leaders in our sector in regards to the ethical performance with which we carry out our business. We believe ethics and success are complementary, that is why, to achieve our vision to contribute to a better world, we base our performance on corporate values: dream big, we are owners, excellent people, integrity, sustainable management, and we are passion-driven.

The Anti-Corruption Policy was updated in 2019. This policy seeks to deliver a document specifying our commitment to transparency, the fight against all forms of corruption, including extortion and bribery, through responsible, ethical, transparent and respectful performance, to our employees, suppliers and the general public.

The Anti-Corruption Policy promotes a culture of ethics and values that helps prevent, detect, investigate and correct fraud and corruption events, and ensures transparency in management through the Board of Directors and our team members.

The Policy defines the limits within which cbc employees may act in accordance with the law and internal policies. This Policy is illustrative but not exhaustive, since employees must always act in accordance with cbc’s principles and values. The Policy includes a commitment to the continuous improvement of the anti-bribery management system.

Since 2019, the Compliance area is responsible for the implementation, continuous improvement and follow-up with other anti-bribery management system areas.

cbc considers that it is important for stakeholders to know that in both 2019 and 2018, no legal cases related to corruption have been filed. The GRI 205-3 requirements are used to this end.

a. Total number and nature of confirmed corruption cases: No corruption cases confirmed.

b. Total number of confirmed cases where an employee has been dismissed for corruption, or a disciplinary action has been taken in this regard:

No employee has been dismissed, and no disciplinary action has been taken for any case of corruption.

c. Total number of confirmed cases where contracts with business partners have been rescinded or not renewed for infringements related to corruption:

There are no cases where contracts have been rescinded or have not been renewed with business partners due to corruption cases.

d. Public legal cases related to corruption brought against the organization or its employees for the reporting period and case results:

No legal cases were filed against the Organization or against its employees for corruption cases.

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Communication and training on anti-fraudand anti-corruption policies and procedures.

Global policies, including Anti-Fraud and Anti-Corruption policies, are issued by the Board of Directors, signed for compliance by the Executive President and applied to the entire organization, including both bodies and committees.

cbc’s employees received training on global policies, including the Anti-Fraud and Anti-Corruption Policy through the e-Learning platform. Training includes comprehension tests. All (100%) employees were certified in the policy.

2019 Global PolicyCompliance

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Peru100%

Honduras100%

Guatemala100%

Nicaragua100%

Puerto Rico100%

Ecuador100%

El Salvador100%

Peru100%

Honduras100%

Guatemala100%

Ecuador100%

Argentina100%

El Salvador100%

cbc corporate

100%CLC100%

cbc Distribution Beliv Corporate cbc CLC


Fraud RiskAssessment

Ethics and transparency are the pillars of cbc’s performance. Therefore, due diligence is implemented to avoid internal, external, mixed and accounting fraud.

cbc performs fraud risk assessments, seeking to proactively identify and mitigate the Organization’s vulnerabilities. The Risk & Compliance Unit (URC for its initials in Spanish), together with the cluster directors and Excellence Center directors, are in charge of performing the risk assessment that enable fraud risks to be identified, documented, managed and mitigated. This assessment is performed on a yearly basis.

The Compliance Area objectively and comprehensively investigates all events of fraud reported through the ethics hotline, leads the investigation and is in charge of transferring cases to the competent authorities according to the event classification and taking the current regulations in each country into account.

The entire investigation process is carried out confidentially.

Dissemination and Public Commitment

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cbc makes its commitment against corruption public through its Code of Ethics, Anti-Corruption Policy, and complaint and consultation channels, disseminating such commitment through training courses for all personnel members, suppliers and the general public through the following web page: www.cbc.co/etica/


General Guidelinesfor Donations Gifts or Hospitality to Third-Parties

The Anti-Corruption Policy clearly establishes that any type of donation, gift or hospitality may not be made or given to any public official who is at such time responsible for the handling of permits, licenses or any type of authorization affecting cbc, either directly or indirectly (i.e. to family members or friends of the official).

No donation, gift or hospitality of any kind, tickets or invitations to events for public officials are allowed when they are for the personal and exclusive benefit of the official, his family members or people associated with the official.

The Anti-Corruption Policy prohibits granting donations, gifts, hospitality, lending or renting furniture, equipment, means of transportation or any other type of support to political parties, candidates to public office, and members of political parties, either directly or indirectly.

Donations for humanitarian purposes

Donations of beverages produced by cbc or humanitarian goods may be made, as long as they contribute to the well-being of the community or for humanitarian purposes and comply with the established procedure and contain the supporting documentation.

Product donations, especially of water, in case of natural disasters, may be made to public entities in charge of providing assistance in these situations. The Policy establishes the use of the Compliance platform for the authorization of all donations. The platform registers requests, approvals and the supporting documentation necessary to verify the delivery and use of such in order to minimize the possibilities of bribery or fraud.

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The Compliance platform is used to consult, identify and document potential risks resulting from donations, contracts with public organizations or conflicts of interest. The platform makes it possible to verify compliance with the requirements to grant donations, gifts or hospitality, and for employees to address concerns and make enquiries about the Code of Ethics and the Anti-Corruption Policy.

The Compliance platform is implemented as one of the controls that enable the timely awarness and prevention of risks that could occur from transactions and activities, such as gifts, donations, conflicts of interest, contracts with officials and public entities, etc. This platform must have the corresponding supporting and follow-up documentation. The Compliance platform procedure is intended to confirm that applications are properly documented and comply with the Anti-Corruption Policy to prevent the occurrence of possible fraud, bribery or corruption. Any person who requests and authorizes donations, gifts or hospitality is required to use the Compliance platform.

CompliancePlatform

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RiskManagement07GRI 102-11Global Compact - Criterion 9, 10, 11


R I S K M A N A G E M E N T

Risk ManagementPolicy

The Risk Management Policy includes all policies and processes of the Organization; therefore, all processes are structured considering the policy and risks that may affect the fulfillment of the objectives of each area and the Organization.

Control Activities: Control activities are the Organization’s policies and procedures that help management ensure that risk responses are executed in an appropriate and timely manner. Risk is defined as the potential occurrence of an event that negatively impacts the achievement of objectives.

Risks considered to have the highest level of exposure should be a risk management priority, favoring growth, competitiveness, business continuity and compliance with laws and regulations.

Risk management is carried out on a regular, timely and systematic basis; and is, likewise, aligned with the objectives of the Organization.

The cbc risk management process includes the following stages, which are developed in all manuals and procedures which compliance is required:

• Assessing Risks• Responding to risks

• Establishing Objectives• Identifying Events

Risk Appetite: The Organization has defined levels of risk appetite that allow it to manage risk in a timely and targeted manner, based on the EBIT levels generated by the Company, considering historic events and setting limits in the critical processes of the business. This allows the Organization to establish timely actions and manage the most critical risks immediately.

Risk appetite covers events in the course of business such as: recovery of accounts receivable, adequate inventory management, product innovation, handling of product out of specification, currency fluctuation in emerging markets where purchase and sales transactions take place.

Risk classification: based on the principles, as well as the type of industry in which cbc operates, the following risk classification is considered:

• Strategic • Reputational • Compliance• Operational • Environmental • Business continuity • Technological • Financial • Information security

Zero tolerance risks: Annually, the cbc Risk Committee states which risks will not be tolerated. Such are focused on compliance with the laws, regulations and internal policies, acts of corruption or damage to the Company’s reputation, ensuring the continuity and sustainability of operations, as well as protecting the integrity of our shareholders, employees, customers and suppliers.

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• Business continuity• Crisis and communication management• Critical environments• Financial health and viability• Talent management• Information and Communication Technology Continuity

• Incident response• Information security• Legal, Audit and Compliance• Organizational behavior• Risk management• Supply chain

Strategic RiskPlan

The Organizational Resilience Plan is provided according to the needs required by the business, relevant changes, or simply based on its performance. This plan is annually presented to the Risk and Finance Committee. The Resilience Plan is developed with the management methodology through all business cycles encompassing the critical processes of the Organization.

The highest international standards and best practices employed by ourstrategic partners served as a reference to develop the Organizational Resilience methodology. This methodology was complemented with systematic tools that enable automation, to which we have incorporated risk matrices generation from the tool, with its corresponding heat map, which means that we do not handle files with different versions; at the same time, these heat maps may be reviewed by the different levels of the Organization such as the process and control owners, as well as the Governance, Risk Management and Compliance (GRC), Compliance and Internal Audit areas. This will enable the assessment of processes based on the proiority and severity of risks that this tool offers. It is made up by 12 interrelated key pillars to ensure that all responsible areas participate and engage in proper risk management to prepare for events that may compromise the achievement of the objectives:

Risk ResponseExecutive Risk Committee

This Committee is in charge of managing cbs’s risk for the entire Company and stakeholders, together with executives in charge of each area within the Organization.

In the event that new operations are acquired, the Corporate Risk Unit performs an initial assessment to identify possible fraud risks or overall business risks. Once the relevant risks are identified, the area’s management must define how this risk will be mitigated. All responses must be determined to bear the risk within the tolerance limits.

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Fraud Risk AssessmentEthics and transparency are the pillars of performance of cbc. Therefore, due diligence is implemented to prevent internal, external, mixed and accounting fraud.

cbc conducts fraud risk assessment, proactively seeking to identify and mitigate the vulnerabilities of the Organization. The Governance, Risk Management, and Compliance unit along with the Compliance area, cluster directors, and the Excellence Center directors, are in charge of performing risk assessments to identify, document, manage and mitigate fraud risks. This assessment is performed once a year.

An Anti-Bribery Management System (SGA for its initials in Spanish) has been implemented to serve as basis for the creation of an Anti-Corruption Policy, with the objective to promote an ethical culture with values to help prevent, detect, investigate and mitigate risks of corruption,—that include bribery, fraud, extortion, embezzlement, etc.— in all of its forms.

A fundamental part of the Anti-Corruption Policy is to regulate an ethical culture and zero-tolerance awareness to acts of corruption, the commitment and leadership of a Board of Directors and High Management on dealing with donations to entities or public officials, private entities, Hospitality, Contributions to or Financing of political parties, gifts, hiring former public officials, among other matters.

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Business ContinuityPolicy

The Business Continuity Policy ensures that the plans and procedures to protect human life and facilitate the timely recovery of the Company’s critical processes are in place, in the case of business interruption caused by an unforeseeable event.

In the event of a disaster, the policy prioritizes the safety of all personnel, and must protect the life, well-being and health of employees, suppliers and clients. This policy establishes that in the event of a disaster or accident, the roles and responsibilities of the recovery leaders are defined through the Continuity Plan.

The Plan considers the following aspects:

• Risk management• Crisis and communication management committee during the crisis• Implementing the operation• Recovering the information systems• Training programs• Defining the tests to continue operations• Projecting the implementation costs

The areas that are part of the Company’s value chain have a contingency plan that allows the business to remain active in the event of disaster. cbc key personnel is trained in the Continuity Plan.

Responsible areas introduce the Continuity Plan and the Board of Director’s Risk Committee monitors such plan.

The Plan is assessed under different scenarios at least once a year, and is reviewed and updated by the Corporate Risk area, which must submit reports on follow-up, maintenance and changes to the Plan to the Risk Committee.

Each operation and area, which is part of the different plans that make up the business continuity program, are responsible for maintaining and updating the Recovery Plan.

The Plan includes all the procedures and support agreements that ensure the availability and delivery of our products to the point of sale.

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Roles and responsibilities: area managers are responsible for activating the Continuity Plan if necessary, in events such as natural or man-made disasters and should also ensure that tests are developed for the plan.

Continuity leader: is responsible before the Risks Committee and the Organization for activating and developing the Continuity Plan, along with its operation.

Recovery leader: each area and business unit must have a plan coordinator or recovery leader, who will be in charge of ensuring its development.

Corporate Risks Unit: documents and maintains routines to update the positions that have responsibilities in the event of a crisis, according to the structure of the Organization.

Internal Audit: performs regular audits to the Continuity Plan within its annual work plan.

Insurance Program: our insurance program is based on critical business risks and is thus tailored to respond with minimum coverage at the time of a disaster.


ValueChain08GRI 102-40, 102–42, 102-43, 102–44, 102–46, 102–47, 102–56Global Compact Criterion 21


For cbc, value chain sustainability is the management of environmental, social and economic impacts and the encouragement of good governance within the framework of values and ethical principles on which the Company is based, and of the 10 Principles of the UN Global Compact.

It is important for us to know the expectations of the different stakeholders and work to meet them in a timely manner, ensuring the long-term growth and sustainability of the Company, complying with local and international regulations that apply to the industry.

Value Chain

VA L U E C H A I N

Supply Operations Marketing Customers Post-consumptionSales &Distribution

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SUPPLY OPERATIONS MARKETING CLIENTS POST- CONSUMPTIONSALES ANDDISTRIBUTION

Strategic suppliers18 production plants,

19 strategic partnerships with

co-packers

• Operational Purchasing Committee and Policy

• Local suppliers’ development

• Suppliers certification and evaluation

• Purchasing mechanisms based on fair competition as reverse auctions and tenders

• Long-term innovation and development of relationships

• Code of Ethics for purchasing processes

• Quality and Safety Policy

• Community Relationship Matrix

• Research and Innovation

• Occupational Health and Safety Policy

• Environmental Sustainability Programs

• Manufacturing Excellence Program

• Excellence Program for Distribution Agencies

• Dynamic Dispatch

• Environmental Sustainability Programs

• Community Relationship Matrix

• We seek to meet customers needs and expectations through:

- Innovation- Memorable experiences- Functional products - Marking for informed

decision-making

• Share social and environmental sustainability vision

• Portfolio of leading brands

• Customer segmentation for specialized care

• Increased sales and revenue consulting (Revenue Management)

• Trade Marketing

• Timely and efficient customer service

• Technology that supports the identification of opportunities and development

• 100% recyclable packaging and recycling programs

• Protection of aquifer recharge areas through Water Funds participation

• Use of recycled resin in containers

• Consumer assistance mechanisms

• Environmental Management Policy

Business operations in 16 countries

Portfolio of leading brands.One beverage for every occasion and different

lifestyles.

Some of our Actions

More than 650 thousand clients in Latin America

and the Caribbean

Programs that contribute to a Better World

Corporate Governance Corporate Governance Policy • Mission, Vision and Values • Strategic Planning • Global Policies • Code of Ethics

• Compliance Mechanisms • Committees appointed by the Board of Directors: Ethics, People & Management, Risks & Finance, Audit

Human Rights, People & Management People & Management Committee • Code of Ethics applicable to all the value chain • Includes respect for Human Rights • Talent attraction, retention, development

and recognition processes• Programs and culture of excellence • Factory of Leaders • Inclusion Performance assessment programs and career plans based on meritocracy• Skill Training and Development Engagement Committees • Technology • Competitive remuneration and benefits

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VA L U E C H A I N

Stakeholdersand Material Issues09GRI 102-40, 102-42, 102-43, 102-44, 102-46, 102-47, 102-56Global Compact - Criterion 21


Global Reporting Initiative Standards - GRI. SustainableDevelopment Goals (SDG).10 Global Compact Principles.

To ensure the quality and content of our advanced-level Communication on Progress, the following sustainability tools were used as reference:

About the report

Results, as requested by the advanced level, of Communication on Progress of the United Nations Global Compact presented in this report, have been externally verified by a consultant specialized in sustainability. The letter is attached at the end of this report.

cbc has been part of the United Nations Global Compact since 2013, initially submitting active reports. In 2019, it submitted its third advanced report, showing and demonstrating the Company’s performance in economic, environmental and social matters for the period between January 2019 and December 2019. This advanced-level report shows compliance with the 10 Global Compact Principles, with its 21 corresponding criteria, in accordance with the Global Reporting Initiative-GRI (Core Option) Standards.

External verification of this report

Review of the sustainability context

Sustainability

Review of different materials such as:

Review of GRI StandardsSustainable Development Goals (SDG)10 Global Compact PrinciplesReview of cbc Code of EthicsReview of cbc of specific policies of the different cbc areasReview of internal processes and programsActions developed by cbccbc Corporate Reputation Index Assessments Review of resultsMonitoring indicators: qualitative data to measure degree of complianceReview of Partnerships and ProgramsReview of internal audits performedReview of external audits performedcbc international rating reportVisits to cbc plantsVisits and interviews to different audiencesPublicationsVideos

Review of the sustainability context

Definition of report contents

Materiality

As a result of performed activities, a list of the most important management aspects for the Company and stakeholders was obtained.

Material aspects for the sustainability management of the Company are based on legal compliance, on the growth of the operations, on the social and economic impact they generate in the different countries and communities, on expectations from the various stakeholders and on the Sustainable Development Goals (SDG) . This model of management is based on the compliance of the United Nations Global Compact principles.

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S TA K E H O L D E R S

A portfolio of leading brands that allows growth in sales and the sustainability of the businesses by developing a long-term relationship and receiving personalized and timely service.

Portfolio of leading brandsSales executives that offer advice for customer growth and development and an increase in revenuesPortfolio and differentiated packaging according to events and lifestyle Client segmentation to provide strategic advice by client typeTechnological platform with information from each client to identify growth opportunities and quickly respond to their needsCutting-edge and efficient customer service systems

Comprehensive portfolio of leading brandsQuality and safety processesInnovative portfolio based on the consumers´ needs and expectationsMarketing campaigns and events that connect and offer memorable experiencesSocial and environmental sustainability programs

Talent attraction programsPerformance assessment based on skills and outcomes and an individual development plan (PDI)Training and education programs through Apex UniversityCollaborative offices designed as innovation and creativity spacesOrganizational health surveys and Engagement committees with employee participationDefined career plans based on meritocracyCode of Ethics accompanied by campaigns promoting and strengthening values and complaint channel

Local employee recruitment Partnerships for program development Transfer of knowledge and skillsCommunication and dialogue with transparency Sustainability reports

Beverages of the highest quality in convenient packaging and at competitive prices, adapted to consumption needs and different life-styles.

Leading brands that provide memorable experiences and enable them to share sustainability and development purposes.

Develop a career plan through the meritocracy system. Training on and development of skills that enable personal and professional growth. Culture that enables the connection between individual and corporate dreams.

Live the best experiences in an environment of inclusion, collaboration, fairness and shared values.

• Local job creation• Development of the area• Sustainable management model• Communication and dialogue

Clients

1

2

3

4

5

6

STAKEHOLDER NEEDS / EXPECTATIONS OF OUR STAKEHOLDERS ACTIONS TO MEET EXPECTATIONS

Consumers

Employees

Communities

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Stakeholdersand Materials Issues


Timely and quality information, sustainability reports.

Building long-term partnerships.

Transparency, objectivity and ethics in the process of selection of suppliers, as well as joint development and innovation.

Partnerships for social, environmental and economic program development that positively impact vulnerable populations and contribute to an inclusive and sustainable development model.

Promote an environment of trust through transparent and timely communication and information.

Economic and social impact.

Periodic reportsOn-line inquiries and information Sustainability reports

Strategic planning, innovation and developmentBidding mechanismsCode of Ethics for purchasing processes

Cooperation agreementsSustainability reports

Press conferencesPress ReleasesAnswer to requests for information

Legal complianceSustainability reportsPrivate public partnerships based on transparencyand compliance mechanisms

7

8

9

10

11

12

Investors andFinancial Analysts

Suppliers

National and InternationalNon-Governmental

Organizations

Media

Central and LocalGovernments

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Stakeholdersand Materials Issues

STAKEHOLDER NEEDS / EXPECTATIONS OF OUR STAKEHOLDERS ACTIONS TO MEET EXPECTATIONS


According to the materiality analysis internally performed by cbc, the coverage and scope of each material issue was defined; each is reported globally, including cbc’s own operations.

MaterialityChart

Impact on the Business

Imp

act

on

Stak

ehol

ders

7

6

5

4

3

2

1

8

9

1 0

7654321 8 9 1 0

Portfolio of leading brands Customer service excellenceMarket segmentation andcustomized consultancyQuality and safetyCareer growth and developmentMeritocracyValues InclusionEthics and transparency Social dialogue Environmental sustainabilityEconomic and social impact Partnerships for development

High

HighLow

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Clients10GRI 102-6


C L I E N T S

Clients

At cbc, we serve more than 650 thousand monthly clients in Latin America and the Caribbean. Most of them are retailers or small neighborhood stores, business that generate the daily sustenance of business owners and their families.

We provide our clients with a portfolio of leading brand beverages and food that will enable their sales growth, and the logistics/supply chain optimization in the delivery process, developing a long-term relationship, offering personalized, timely and high-quality service. In Peru and Ecuador, combined food and beverage distribution was implemented.

In order to provide personalized attention, our client segmentation is based on the following criteria:

Customization begins with a selection of products, brands and packaging that best fit the clients line of business. We call this the Priority Portfolio.

The Service Model design ensures that our teams have the processes and tools to maximize service to our clients, consequently seeking to be considered the best supplier in the industry.

Finally, it enables us to design promotions and activations that really impact our clients’ business, to maximize their revenue and improve their standard of living.

A.B.C.

Line of business: retailers, wholesalers or institutional clientsBusiness potential for each clientGeographic location

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ClientSegmentation

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on-premiseconsumption

Modernmarket

Traditionalmarket

Restaurants Fast Food

KiosksCevicherías

Institutional

Modernmarket

Traditionalmarket

Companies Schools or Colleges

UniversitiesGovernment

Wholesaler

Modernmarket

Traditionalmarket

Active wholesalersPassive wholesalers

Shopping Club

off-premiseconsumption

Modernmarket

Traditionalmarket

Small neighborhood stores Supermarkets

Convenience stores

C L I E N T S


Consumers11GRI 416-1, 103-1, 103-2, 103-3GRI 417-1, 103-1, 103-2, 103-3

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Consumers

At cbc, we always seek to meet the needs of our consumers. Therefore, we periodically develop a series of studies that enable us to learn about lifestyles, motivations, consumption occasions and trends that are increasingly oriented to more functional beverages, with vitamins and minerals to contribute to general well-being.

We seek to meet the needs and expectations of our consumers.

We follow a structured innovation process and reformulate our products according to the nutritional needs of the countries where we are present.

We work to offer clear information on our labels about the ingredients in each beverage, for the informed decision-making of our clients and their families. We maintain the highest standards of quality in the production and distribution processes of our products to guarantee their safety and security.

We also consider it important to share memorable campaigns with them, which seek to communicate positive feelings and inspire change.

C O N S U M E R S

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Quality andSafety Policy

As a company directly or indirectly dedicated to food or beverage manufacturing, we are committed to ensuring the quality and safety of our products through the continuous improvement of our safety management system. We comply with all the clients’ legal requirements and any others that apply, while maintaining an effective communication with all stakeholders.

Standards

Coding Policy

Traceability of all manufactured products must be guaranteed and the entire production and packaging must be correctly and clearly coded, verifying and validating the first and last individual packaging in each production, every hour, and the minimum information contained (batch, plant identification, year, Julian day, line and time of production), and using that set out in the Organization’s Coding procedure and each country’s own product market regulations as a standard, always using the most current one.

The distribution of properly coded products in the market must be guaranteed; therefore, under no circumstances will the plant operate without coding or allow a product without coding to be dispatched.

General policy for areas involvedin the supply chain

To ensure the safety and quality of the products, all team members of the areas involved in the general manufacturing process, such as: Purchasing, Research and Development, Logistics, People & Management, Projects, among others, must comply with the policies, procedures and manuals established in the Safety Management system, based on the responsibilities defined in each of these.

C O N S U M E R S

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Plant/Operations and Services ManagersPromote commitment to and compliance with the policy, internal procedures, legal requirements and any others established in each country where cbc operates.Promote policy compliance, through project proposal and implementation that enables safety and quality risks to be minimized.Ensure that the Global Quality and Safety Policy is displayed and visible at the Production Plants’ main access door.

Cluster Directors

Roles and Responsibilities

Promote commitment to and compliance with the policy, internal procedures, legal requirements and others established in each country where cbc operates.

Local People & Management Manager (plant, country or cluster)Ensure that the Global Quality and Safety Policy is included as part of the Inycie in the Company. Ensure that the Global Quality and Safety Policy is included in the annual training plan that covers all personnel from plants and agencies.Ensure that the Coding Policy is included in the annual plant and production plant personnel training plan.

Production Plant EmployeesBe acquainted and comply with the Global Quality and Safety Policy.Be acquainted and comply with the Glass, Brittle Plastic and Ceramic Policy.Be acquainted and comply with the Coding Policy.Comply with all procedures that arise from this Policy and the Safety Management System.

Organization EmployeesBe acquainted and comply with the Global Quality and Safety Policy.Comply with all procedures that arise from this policy and the Safety Management System.

C O N S U M E R S

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The FSSC 22000 (Food Safety System Certification) provides a scheme to effectively manage company responsibilities regarding food safety. Currently, the FSSC 22000 is a certification recognized by the Global Food Safety Initiative (GFSI), internationally accepted and based on existing ISO standards.

Receiving the certification under this standard shows that a company has implemented a robust Safety Management system, and that it meets the requirements of clients and consumers. Today, more than 17,000 organizations in 140 countries around the world have achieved a FSSC 22000 certification; this company is one of them.

Having implemented an FSSC 2200-based Quality and Safety Management System in all our operations, we have already achieved the certification of three plants: two in Guatemala (Mariposa and Cuyotenango), and one in El Salvador (Livsmart). Moreover, we seek to certify 100% of our plants and to reinforce our commitment to deliver safe products and with the highest standards of quality on a daily basis.

Quality Controland Safety

C O N S U M E R S

6 3

cbc complies with and respects labelling laws and regulations in all countries where it operates. Likewise, our strategic partners, PepsiCo and BELIV, decided to place the caloric content of the products on the front of the label, even in countries where this is not required by legislation.

We make sure that consumers make informed decisions for themselves and for their families, that is why we include clear information about product ingredients on the labels.

Beliv’s advances in labelling are the following: 70% of products have GDAs (Guideline Daily Amounts), 15% are in the implementation process, and the remaining 15% complies with local regulations. Peru and Ecuador are an example of this.

Labelling

C O N S U M E R S

Suppliers12GRI 102-9GRI 205, 103-1, 103-2, 103-3GRI 414, 103-1, 103-2Global Compact - Principles 1, 2, 10Global Compact - Criterion 3, 4, 5, 12, 13 and 14


S U P P L I E R S

PurchasingPolicy

The Purchasing Policy establishes guidelines and responsibilities in the goods and services procurement process for all operations in the Organization, so that operations are executed based on the basic principles of transparency, equal opportunities, integrity and professional ethics, and confidentiality.

The Purchasing Policy ensures that the Organization meets the requirements of its operations efficiently, with transparency and under a framework of ethics, establishing guidelines and responsibilities for the people involved in the process, guaranteeing the value for the money invested in these projects and making an important contribution to the profitability of the business.

Purchasing AreaThis is the Purchasing and Supply Department, with its different areas and sub-divisions (purchasing, logistics and supply of materials or direct and indirect goods and services). The Purchasing Area promotes innovation, growth and the strengthening of long-term relationships among certified suppliers.

IndependencyThe Purchasing Area must develop independence from suppliers, contractors and distributors to ensure control in the supply chain in terms of its quality, prices and transparency.

Contracting or acquisitionFor any contracting or acquisition, only suppliers related to the category of the good or service to be purchased should be included in the bidding process; that is, the quoted item should be referenced in the line of business stated in the commercial record of the supplier’s company.

The Purchasing Area should not be bound to issue a purchase order on those events acquired under regularization, evidencing that they do not comply with the support material that ensure due compliance with the Policy and purchasing processes.

a. Transparency: keep all documents and records in order. b. Confidentiality: do not disclose the information of the Organization.

This principle applies to employees and suppliers.

c. Equal opportunities: objective purchasing and supplier-selection processes.

d. Integrity and professional ethics: avoid conflicts of interest, as well as any illegal payment.

Basic PurchasingPrinciples

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OperationalPurchasingCommittee

There are currently two purchasing committees known as: the Primary Committee – comprised of the Chairman of the Board, Executive President, Distribution CEO, VP of Finance, Purchasing Director, Corporate Audit Director and Corporate Strategy Director-- and the Enlarged Committee.

The Purchasing Committee meets on a quarterly basis with a maximum difference of one month between the two calls. Case-specific situations need to be dealt with on dates other than those planned for the Committee meetings, the Chairman of the Primary Committee must call an extraordinary meeting.

CBC INTL, S.A. was created in 2018 as a Global Procurement Center, with headquarters in Montevideo, Uruguay. CBC INTL is a subsidiary of cbc that ensures that all business units receive the strategic goods and linked services needed for their industrial processes in the appropriate quantity, quality, price, time and location.

The principles governing CBC INTL are transparency, respect for local and international laws, and purchasing mechanisms based on fair competition such as reverse auctions.

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S U P P L I E R S

PurchasingCode of Ethics

Every person in charge of purchasing and procurement duties for the Organization’s affiliate and subsidiary operations, whether they are from the Purchasing Area or a different area, must always act in accordance with the Code of Ethics and the Confidentiality Agreement.

All employees in charge of purchases must ensure that they are acquainted with and sign the Company's Code of Ethics, and the Suppliers Purchasing Policy.

The Organization’s relationship with its suppliers is based on integrity, confidentiality, honesty and transparency, as evidenced by the signing of the Confidentiality Agreement. All internal areas must act with integrity with suppliers, fairly and impartially respecting the contractual commitments established with them.

Purchasing processes must ensure the quality of the good or service and guarantee compliance with the Code of Ethics and the Purchasing Policy in a sustainable and standardized manner for all entities of the Organization.

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S U P P L I E R S

SupplierCertification

Its aim is to determine the efficiency and effectiveness of each supplier’s management regarding the supply of raw materials, manufacturing materials, packaging materials, parts and services, indicating the degree of excellence of the supplier, subject to the certification process. The general procedure shows the steps required to execute the suppliers’ certification activities, of the direct and indirect categories, which will be required to acquire goods and services according to the purchasing policies of the Organization.

Evaluation 1 – Technical Quality: several types of requirements will be requested from each supplier as an initial filter to begin the certification process; these requirements will vary according to the material category.

Evaluation 2 – Financial / Legal: in this second evaluation, the supplier will be evaluated by COFACE on financial and legal aspects. COFACE will issue a report indicating if the supplier meets a minimum score for approval. This evaluation applies to all material categories.

Evaluation 3 – Quality / Safety: the supplier will be evaluated by a certifying agency on quality / safety aspects. This evaluation only applies to the following categories: raw material, packaging material, MRO and services. For raw material and packaging material, the evaluation consists of a self-assessment questionnaire (SAQ) and a visit to the supplier’s facilities. For MRO and services, only a self-assessment questionnaire (SAQ) is needed. If a supplier under evaluation has a valid FSSC 22000 certification, the approval shall be immediate.

Evaluation 4 – SMETA: in this case, the supplier will be evaluated by a certifying agency according to the SMETA protocol under the responsible supply (RS) area. Evaluation consists of a self-assessment questionnaire (SAQ) and a visit to the supplier’s facilities. In 2017, the Purchasing Department began with the SMETA (Sedex Members Ethical Trade Audits) Audit methodology, certified by SGS, which works with SEDEX. This Audit is performed on all suppliers, according to that established in the high-impact matrix.

In the plan established by the Organization, high-impact suppliers are the first to be addressed, by expense or by the vitality of the service or product to be delivered, to then continue with the process. A high-impact matrix has been defined to identify the priority of the certification according to its location in the defined matrix.

This practice has been implemented since 2017 and has enabled the mitigation of risks in the supply chain by verifying that our suppliers act responsibly under principles of legality, integrity, capacity and security, based on the commitment to our Code of Ethics and internal policies, and ensuring the fulfillment of the requirements for this certification.

Pillars for supplier certification

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S U P P L I E R S

Supplier EvaluationMethodology

The evaluation of suppliers is a fundamental part of the Purchasing area, since it meets the objective of defining the high-impact matrix on which suppliers will be evaluated, establishing the criteria for their evaluation and steps to be followed to carry out the evaluation, control and monitoring of certified and commercially active suppliers of the Organization. The purchase does not end when the order if filed; it is essential to monitor deliveries, quality problems, returns, shortages, payments and other situations that may affect the completion of an operation.

This procedure evaluates the performance of those suppliers that have been selected, approved and certified, and must evaluate those suppliers that provide materials defined in the Direct category and the permanent services, in the Indirect category; evaluating those suppliers of the Indirect category that are not defined as high impact suppliers for both services and materials, is optional.

Steps prior to Supplier Evaluation

• Develop a supplier High-Impact Matrix: impact classification for each supplier is established according to the importance the supply represents in the cbc value chain. Upon establishing the matrix with the indicated criteria, information will be obtained in the entire chain, due to the fulfillment of the requirements that result in the Company’s promise of value.

• Define the Criteria for Supplier Evaluation: the criteria are the comparison references among the suppliers being evaluate. The characterization of the criteria will depend largely on both the type of product or service required and the specific needs of the user area.

For this purpose, general guidelines are created to establish the appropriate criteria to measure each of the suppliers that provide materials or services. Information from the evaluation will be centralized through the Purchasing area, to review the trade agreements. The general levels of criteria are quality, delivery, competitiveness and service.

• Criteria Rating Scale: all selected criteria are assumed to be of great importance in evaluating a supplier, therefore scores are averaged to establish the supplier's rating. Supplier rating ranges are assigned based on the criteria, beginning with the evaluation of important aspects by those responsible. This scale may be: Supplier Type A (90 to 100 pts.), Supplier Type B (80 to 89 pts.), Supplier Type C (less than 80 pts.).

The plan established by the Organization first addresses high-impact suppliers, by expense or by the vitality of the service or product to be delivered, and then continues with the process.

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S U P P L I E R S

Risk Identification Protocols in Relation to Suppliers

Process-level Risk

The process-level risk matrix was developed to support critical business processes. Such matrix includes important elements such as risk identification, its corresponding area and the control activity that will mitigate such risk.

Anti-Corruption Clausefor Suppliers

In accordance with our Anti-Corruption Policy and the principles established in our Code of Ethics and the Purchasing Policy, an essential requirement for a company or individual to become a cbc supplier is to be acquainted with both policies and with the Code of Ethics, as well as to expressly adhere to their principles.

Likewise, contracts entered into by cbc include the anti-corruption clause where the parties declare that they meet the highest standards of business ethics and integrity, and also observe all the national and international legal provisions and regulations in accordance with the activities that they carry out, as well as those applicable to the prevention of the crime of bribery, kickbacks or corruption in all its forms, and which it likewise requires from its contractors.

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S U P P L I E R S

Contractswith Suppliers

AuditingSuppliers

The Anti-Fraud and Anti-Corruption Policy and Code of Ethics prohibit the offering or giving of all forms of bribe; that is why cbc’s contracts with suppliers of goods and services provide for the compliance of integrity standards, as follows:

“CBC complies with the highest standards of integrity and ethics in business and abides by all national laws and regulations that may apply to prevent bribery, kickback and other corruption crimes and so demands that the contractors fully adhere thereto.”

The Contractor is bound to guarantee:

“Not having offered, paid, delivered, promised to pay, authorized to pay, directly or indirectly, any monies, gifts or any other valuable item or property in order to inappropriately obtain or retain any business or commercial advantage, or induce someone to carry out inappropriate actions or other practices that may result in the violation of the legislation of the Republic of Guatemala.”

Likewise, the contractor must commit to comply with the laws of other countries, particularly with those criminalizing bribery, corruption and money laundering.

”The supplier is bound to strictly comply with the laws of the supplier’s country of origin and the laws of other countries where it carries out activities of any nature.”

All suppliers are bound to adhere to cbc’s Code of Ethics and comply with its principles, which include the respect for human rights and the exclusion of child labor. They must guarantee the compliance with the laws and make sure that minors are not employed.

“Employ the labor that is deemed necessary and sufficient for the performance of services; the employees shall be under direct dependency of the supplier, who shall guarantee the compliance with the laws, including those on minimum age of employees; comply with all occupational safety, health and hygiene provisions and requirements, and environmental and food safety standards while providing their services within cbc’s facilities; comply with all provisions of cbc’s Code of Ethics, which the supplier acknowledges to hold and be aware of.”

Compliance withthe Code of Ethics

By means of a specific clause, contractors authorize cbc to audit and inspect the suppliers’ compliance with labor laws and other provisions, as deemed convenient, either directly or through specialized auditors, so cbc is able to verify the compliance with the law and the principles of the Code of Ethics.

Suppliers accept to:

Fully maintain the representations and warranties of the contract; Reply to any and all verbal or written survey that the suppliers may receive from cbc from time to time and allow cbc to interview the suppliers’ staff during reasonable business hours.

1.2.

7 1

S U P P L I E R S

Manual of LaborCompliance Requirementsfor Service Suppliers

In order to ensure cbc’s suppliers’ compliance with labor standards, a Manual of Labor Compliance Requirements has been prepared to serve as a tool whereby suppliers of goods and services become aware not only of the information that will allow to join efforts in the observance of human and labor rights, but also of the applicable rights and obligations under the International Labor Organization conventions ratified by the countries where cbc conducts operations.

The Manual provides general guidelines for the fulfillment of the employment requirements and labor rights recognized by the legal framework of each country. It makes suppliers aware of the general principles and provisions that must be observed in terms of labor and occupational safety, to guarantee an appropriate management of their human resources within the scope of their commercial relationship with cbc.

Since cbc is a socially responsible company that conducts labor law audits of all of their operations on a regular basis and verify their compliance with each country-specific legislation.

The baseline for measuring compliance of the labor matters in each country are set by hiring local experts in Labor Law from outside the Company, who provide a list of legal requirements which are to be met. Once their compliance is verified, they render a report on the outcome of such review.

Subsequently, cbc continues conducting audits to ensure the compliance of the labor laws.

The audits involve all the employment documentation required by the Labor Code and other legal provisions, as well as random assessments of the current workers’ employment records.

Labor LawCompliance Auditingof Logistics Operators

7 2

S U P P L I E R S

People & Management13GRI 102-7, 102-8, 102-41,GRI 404-1, 103-1, 103-2, 103-3 GRI 404-2, 103-1, 103-2, 103-3GRI 404-3, 103-1, 103-2, 103-3GRI 405-1, 103-1, 103-2, 103-3 Global Compact- Principles 1, 3, 6Global Compact - Criterion 6, 7, 8


P E O P L E & M A N A G E M E N T

74

To become the division that places greater value on cbc and Beliv, while being seen by all our team members as a strategic partner that attracts, retains, develops, and recognizes talent through discipline, operational excellence, and highly motivated teamwork.

Our Dream

People & ManagementPolicies

People & Management Policies are aimed at meeting the following objectives:

Ensure that the entire People & Management team perform the processes in a standardized manner, while constantly striving for excellence to achieve the expected results.

Improve the outcome by adopting the best practices applicable to each process.

Encourage the People & Management division to strive to become the best.

•

•

•

Create healthy competition that inspires team members to perform to their best in their respective division.

Promote continuous improvement by conducting the routine People & Management processes with excellence.

Recognize sustainable excellence in both means and results.

•

•

•

5 Strategic Pillars

ATTRACT / RECRUITIdentifying talents

External Recruitment

DESARROLLARMaking talents grow

exponentially

Organizational Development

RECOGNIZEPursuing excellence

Management Processes

RETAINStrengthening the

team’s heart

Cultural Commitment

RETAINIntelligence and efficiency

Technology

7 5


Recruitment and SelectionPrograms

Incorporation of young talents to begin and develop their professional career in the Company with a holistic approach, thus, preparing cbc for sustainable growth.

Recruitment program of individuals with a specific profile intended for a specific division in the Company.

Internship program for young university students assigned to strategic projects that benefit the Company and develop the Organization’s competencies, in order to position the Company in an international scenario.

internshipPosition the Company as a benchmark employer where Masters’ graduates carry out group projects in areas with strategic needs.

masterconsulting

7 6


These young people have the opportunity to incorporate to the Company through the Trainee Program, once they finish their university studies. Upon their incorporation to the Company, they undergo a nine-month training process whereby they become familiar with all the corporate divisions; this allows them to start their career in the field they are passionate about. As they strengthen their leadership and other competencies and see results, they have merit-based advance in their career development. In 2019, the program had 12 trainees who currently hold positions in cbc’s operations. These are ten trainees who currently hold strategic and leadership positions in the Company, including a representative of the 2019 graduates.

Some of the trainees with leadershipcareers within the Company

Trainees

7 7

Rene Quiroa1993 Graduate

Corporate Manufacturing Director

Ana Lucía Godoy2017 Graduate

R&S and Project Specialist

Héctor Cardona2019 GraduateSales Supervisor

Karen Haro2003 GraduateM&A Director

Maria José Reyes2013 Graduate

Financial Planning Specialist

Estuardo Mazariegos1998 Graduate

CFO

Diego de León2012 Graduate

Franchise Manager

Laura Recinos2013 Graduate Chief of Sales

Axel Mayorga2011 Graduate

Commercial Director Honduras

Maria Fernanda Cancinos

2014 GraduateDevelopment Manager

Juan Enrique Mosquera2018 Graduate

Consumer Pricing Specialist


ZIAD SAMIRNAHASCEO cbc

Connect Connect is a digital platform for the management and interaction of cbc’s team members. It consists of five modules:

OrganizationalChart

Anibal JoséMujica Véliz

CEO

AntonioTravieso Arraiz

CEO

César HugoAbreu PrietoHUB PUERTO RICOCHIEF COMMERCIALOFFICER

LuisCarballoECUADORCHIEF COMMERCIALOFFICER

Fredy DanielPalencia Flores

CHIEF FINANCIALOFFICER

José ArquímidesSanabria

PUERTO RICO CEO

Juan PabloMata Saravia

GT Y JMCEO

Leonel RobertoGallardoHUB PUERTO RICO LOGISTICS CHIEFOFFICER

René AdalbertoQuiroa MoralesCHIEF PRODUCTIONOFFICER, CA ANDCARIBBEAN FACTORY

NathalieHasbun HasbunFRANCHISED BRANDSCHIEF MARKETINGOFFICER

Overall management of annual goals.

Goals

Management of employment information of all the team members of cbc.

Employee Central

Management of performance assessments by means of the9-Box Grid platform.

Performance

Management of the recruitment and staff selection processes of internal and external job candidates.

Recruitment

Management of cbc’s remuneration to employees.

Compensations

BY MEANS OF CONNECT TOOLThe entire organizational structure can be diagrammed, starting from the CEO and then cascading to each division. A profile description is provided for each position, from a report on activities to personal information of the employee. The tool also allows the management of the employees’ performance cycle by means of the 9-Box Grid assessment, as well as the management of time off for vacations and additional benefits.

7 8


Process through which the Company’s employees

are evaluated by mapping knowledge and results

according to a merit-based model that allows

them to develop a Career Plan in the Company.

Employment Cycle

Use of technological platform

Individual Development Plan that allows

narrowing gaps in performance assessment.

The chart shows the total number of employees

assessed in the employment cycle, and the

number of individuals with an IDP.

IDP This platform allows the management of

creating and assigning learning contents. The

chart shows annual corporate data on the

number of courses completed at cbc and Beliv.

e-Learning

Employees 2018Employment Cycle

Employees withDevelopment Goals

Connect

7 9

2,218

1,980

CompletedCourses

In-ProgressCourses

2018

2019

2018

2019

30,218

6620

CompletedCourses

In-ProgressCourses

46,589

55,689

Employees 2019Employment Cycle

Employees withDevelopment Goals

2015

1715


ExcellencePrograms

The PEF and PEX Programs on Production Plant Excellence and Sales Agencies are tools that allow measuring the performance of key processes and indicators that encourage constant improvement through excellence while executing routines; they are also useful for identifying best practices so they can be recognized and rewarded.

During the 8th cycle of the most important corporate recognition program, 10 plants and 72 agencies throughout Guatemala, El Salvador, Honduras, Nicaragua, Puerto Rico, Jamaica, Ecuador, and Peru, were evaluated.

The annual communication was held connecting with all of the operations through virtual connection from the corporate offices, including local gatherings in March 2019. Plants and agencies rendering best results during 2019 were recognized and rewarded. The first price for Manufacturing Excellence was awarded to the Cuyotenango Plant, and the second prize was given to Mariposa Plant, both located in Guatemala. Likewise, Guatemala was awarded the first prize for Sales Agency Excellence program in both Falcon and Eagle categories. Most of the stars were awarded to agencies in Guatemala, proving that no dream is too big when we wholeheartedly work to make it come true.

The Excellence Programs are tools for assessment, orientation and motivation for employees to comply with processes, measure performance, reach goals, while providing sustainability to the operations in the long run.

The evaluations are conducted by duly qualified professionals, so it is an objective, evidence-based process. The teams of each plant and agency guarantee monthly self-evaluations which results are duly documented. Moreover, evaluators conduct two inspections each year, in August and January, in order to verify and certify the results.

Prize winners receive not only public recognition but also a bonus, which is shared by 100% of the team members of the awarded plant or agency.

8 0


Manufacturing ExcellenceProgram Evolution

Evolution PEF Grades from 2015 to 2019

The manufacturing excellence program measures the observance of processes and results (whether key indicators are reached in the plant.) Both categories contribute to the total grade of the program.

8 1

Average Intermediate Grade Average Result Grade Average Final Grade

2015

86.87 78.5870.28

2016

92.92 83.4673.99

2017

80.66 83.9684.64

2018

78.52 81.3484.16

2019

82.27 81.9981.67

Its contents have become more relevant year after year. More complex processes have been designed and the program to guarantee constant improvement in Production Plants under assessment has raised the standards.

Excellence programs allow to assess the observance ofmanufacturing processes (PEF) and agency processes (PEX).


8 2

Evolution of the AgencyExcellence Program

Evolution PEX Grades from 2015 to 2019

Excellence programs allow to assess the observance ofmanufacturing processes (PEF) and agency processes (PEX).

The manufacturing excellence program measures the observance of processes and results (whether key indicators are reached in the plant). Both categories contribute to the total grade of the program.

Average Intermediate Grade Average Result Grade Average Final Grade

2015

85.7276.64

67.56

2016

79.54 82.0084.46

2017

89.25 89.8490.42

2018

85.22 90.0394.85

2019

84.34 89.5494.80

Its contents have become more relevant year after year. More complex processes have been designed and the program to guarantee constant improvement in Production Plants under assessment has raised the standards.


Assessment

In cbc, the assessment process begins with spelling out the goals and finishes with feedback and closing of the yearly goals, which allows a holistic approach thereof and ensures the sustainability of the employees’ development over time.

Employment Cycle Stages:

8 3

Assignment of Goals Competency Assessment Gathering Feedback and IDP Closing of Goals

1 2 3 4 5


9-Box GridMethodology

GoalAchievement

CompetencyAssessment

The 9-Box Grid is an individual assessment tool that measures two major objectives:

Low Moderate

Results

Competencies

X-Axis:

Y-Axis:

Low

Mod

erat

eH

igh

High

8 4

2017 2018 2019

Stratification of Staff Evaluation

Evaluation The evaluation methodology applies to positions from CEO to analysts. Their assessment is key to establish individual development and career plans.

8 5

184

Women

597 520

157

Men

15981495

395

Total

2195 2015

552

Analyst

EmploymentCategory Women Men 2018 Overall

Total Women Men 2019 OverallTotal

9 47

161

804

324

128

31

56

304

986

466

170

33

143

182

142

42

2

- -

209

814

314

168

40

-

393

996

410

245

46

184

182

96

77

6

Coordinator

Head Post

- --53 10552Specialist

Manager

CEO/Directors/VP

Operational

1495 20155201598 2195597Overall Total


Multiple changesin the same area

Constant change of dutieswithin the same area

Fast changes during earlystages of the career

Growth within the samespecialization area

Changes in different areas

Changes inearly stages

Specialists Multiple changesin different areas

CareerPlan

This is a guide and route for growth within the organizational structure in line with principles of meritocracy and individual strengths.

There are a number of career opportunities in the Company. Not all of them are the same. Each employee features different strengths and development opportunities that allow him or her to grow in his or her unique way.

The Career Plan is based on a meritocratic system in which the only highlighted difference is the talent that each employee shows through his or her achievements.

8 6


Andrea started in 2014 in the financial area as Planning Specialist. In 2016, she accepted the challenge to become HR Controller, a position in which she applied her sound financial knowledge while managing the largest and most important budget of the Company. In late 2017, thanks to her major achievements in the implementation of high-impact projects and her commitment to fulfill indicators and processes, she was promoted to Mergers and Acquisitions Manager, where she uses her strategic approach to analyze businesses and close transactions that imply the Company’s inorganic growth by capitalizing Andrea’s knowledge of the business in its different areas.

Andrea feels proud to work in a company that has challenged and taken her out of her comfort zone, but at the same time has made her talents contribute to the Company’s growth and creation of long-term value.

Career PlanCases

Alfredo began working with the Company 10 years ago as Head of Results; then he took the position of Chief of Sales in the juice and nectar division. Thanks to his genuine interest in people and in achieving results, he was later promoted to Off-Premise Sales Manager. His discipline and commitment took him to be promoted as Walmart Customer Manager, responsible for all the negotiations and indicators with one of cbc’s major customers. This position gave him the comprehensive, holistic knowledge required to become the Revenue Management Manager for Guatemala and Jamaica, responsible for all price management issues in both countries. His ability to perform different roles in the Company and his passionate, enthusiastic look into towards the future moved him ahead as Transformation Manager. For Alfredo, cbc has provided him with mentors and a second family.

Diego entered the Company in 2014 as a Regional Credit Specialist. In this position, he standardized all of cbc’s operational processes in the region, which marked the beginning of his long, successful career in the Company. In 2016, he accepted the challenge to work as Regional Chief in Cuyotenango, where he was later promoted to Trade Marketing Chief of beer operations due to his commitment and constant strive for improvement. His approach to discipline and excellence rendered major results in the area and he is promoted to Manager of beer operations in Guatemala. He currently holds the position of Commercial Manager of the coastal region. Diego reflects the typical dynamism of cbc’s culture and relishes his achievements despite all major challenges.

Alfredo Castañeda

8 7

Andrea Macz Diego Alonso


8 8

ApexUniversity

Apex University is a corporate academic institution whereby cbc manages its employees’ organizational development in line with its corporate strategies and objectives; the development of the team members enables the achievement of cbc’s corporate goals. Team training is developed through three pillars. The Leadership Pillar reinforces their knowledge in terms of culture, competency, diversity, and inclusion.

DEANS

TECHNOLOGICAL PLATFORM

TRAIN THE TRAINERS

FUN

CTI

ON

AL

ME

THO

D

LEA

DE

RSH

IP

Apex University’s foundations consist of:

TRAIN THE TRAINERS

Certifying team members, thus creating a knowledge cascade.

TECHNOLOGY

Promoting growth through e-Learning.

DEANS

Heading the excellence and transformation centers.


8 9

Training structures available to the teams.

Leadership

Functional

Method


ApexUniversity

TechnicalCertifications

The functional pillar provides training to employees, so they can strengthen their technical knowledge and improve their abilities for the best performance of their duties.

This program is focused on accelerating the professional growth of the frontline sales, operations, manufacture, and administrative teams. It offers a set of courses that strengthen team members’ knowledge so they can perform their duties with excellence, and provide them an overall growth as future professionals.

TechnicalCertifications

Manual

Suggested byExcellence Centers

Curricula

Communication Deck

Development Program

9 0

Its approach is aimed to optimize the performance of manufacturing areas through strengthening knowledge and fundamentals in quality, costs, hygiene, routine management, and constant improvement.

Certificate inProductive Efficiency

It strengthens the abilities required for the centralized demand and forecasting plan to be seamlessly executed, while reinforcing logistical and storage guidelines that maximize the return.

Certificate inLogistics Management

It encourages future leaders’ professional training by reinforcing their knowledge in administrative management. Moreover, it boosts their leadership abilities and human engineering skills, which enable an efficient management of processes, resources, and people.

Certificate inBusiness Administration

It strengthens the basic concepts and guidelines that members of the salesforce apply to their daily activities. It also provides the team with the abilities required to gear an effective commercial cycle and build long-lasting relationships with the customers.

Certificate inBusiness Skills


Certification Results

This year, the Technical Certification program was launched for the first time in Guatemala.

This is a training strategy of the Apex University, focused on accelerating the professional growth of the operational team. It offers a set of courses that reinforce team members’ knowledge so they can best perform their duties and enhance their overall growth as future professionals. Thanks to cbc’s partnering with INTECAP, three certifications were conducted simultaneously at six of the operation venues in Guatemala, in October and November.

Business Skills Certification(567 team members)

(285 team members)

(277 team members)

Logistics Management Certification

Productive Efficiency Certification

The forthcoming challenge is to have all countries implementingthis program with their team members next year

9 1


PILLARS METHODOLOGY WHITE BELT

It fosters training, consolidates practices and management tools, and guarantees the observance of problem-solving and analysis methodologies that allow the sustainable management of the business.

This is the first stage of the Lean Six Sigma methodology, in which the LEAN culture, methodology and tools are explained as a process of continuous improvement. In this program, they focus on learning the PDCA (plan-do-check-act) tool, which is the foundation of problem solving in the root-cause analysis, always based on facts.

All employees are trained so they engage in Train the Trainers and get a worldwide certification as White Belt. They assume the responsibility to replicate this course locally, throughout their operations with all their collaborators, from analysts to the top hierarchy.

Courses were given in all of cbc’s locations: Peru, Ecuador, Guatemala, Argentina, Jamaica, El Salvador, Honduras, Nicaragua.

The pillar method develops the following training:

Problem-solving and cause analysis PDCA.

•

Excellence programs: incorporating all certifications and trainings in process management.

•

5S Japanese methodology to create an orderly and clean work environment.

•

Lean Six Sigma Institute Methodology, through certifications in partnership with the Institute, including:

•

•

•

• Black Belt

Green Belt

White Belt

Number of people trained, per position

9 2

Total

2018 2019

488 488

1510

123

1510

103

60530

27262131

Specialists-Headship Postss

Analysts -Coordinators

Managers -Directors

Online PDCAcourse (to date)


Factoryof Leaders

The following are among other trainings of the leadership pillar, aimed to shaping up leaders and owners of the culture, as well as boosting team members’ engagement in diversity and inclusion:

El Salvador

Nicaragua Puerto Rico

EcuadorGuatemala

9 3


Women Trained534

Workshops Executed06

Satisfaction Survey96%

This strategic program is focused on empowering, strengthening and activating women leadership by supplying the necessary tools so that women become aware of their own potential.

The program consists of a series of workshops, informative capsules, trainings, and strategic actions.

WomenLeaders

9 4


Over 150 contents are made available through connect platform to manage an enhanced individual-development plan based on technical, functional and leadership skills.

Video / PDF /Case Studies / Test

Video / PDF / Test Video / PDF Short Videos PDF

One basic level course and one advanced course for each of the 10 competencies.

COE-developed courses to reinforce processes and functions.

Learning capsules on subjects such as family, balance in life, work and leadership.

Selection of top presentations, conferences and forums on topics relevant to enhance team members’ capacities.

Summaries of best sellers on personal and professional growth.

e-LearningPlatform

9 5

Competencies Functional Skills Growing Together/ Leadership Video Library Summaries

and Readings

Courses onCompetencies

20Academic

Courses

101Courses12

SelectedVideos

10Selected

Summaries

09


2018-2019 General Training Indicators of the Company.

Indicator 2018 Values 2019 Values

Average training hours per employee, per month, per employment category

Inclusive Leadership Programs:Factory of Leaders

Inclusive Leadership Programs: Leader Women

Technical Certifications

1.3 hours daily, per employee.Administrative Staff 20%;

Operational Staff 80%

466 women and menin all countries

534 women leaders in countries where training took place

12,725

1129 employees,business operational staff,

plants and operations

1.3 hours daily, per employee.Administrative Staff 20%;

Operational Staff 80%

450 women and menin all countries

30 women leadersin Guatemala

12,725

403 employees, business operational staff,

plants and operations

Average traininghours per month

TrainingIndicators

9 6


MedicalInsurance

ChildrenChristmas Gift

Foodallowance

NewbornGift Certificate

SpecialDiscounts and

Promotions

FuneralServices

Special Pricingon Products

PosthumousBenefits

LifeInsurance

Uniform

Half DayOff

MedicalClinic

FlexibleSchedule

ChristmasGift

EarlyFriday

Benefit Tree

Benefits

This indicator measures employees’ commitment to the Company, so their contribution to each area is essential to structure and implement action plans that enable them to reach the next level.

The goal is to offer to all the employees a benefit plan that exceeds the statutory benefits, so they can enjoy an excellent quality of life. Benefits are a form of recognition to the people as the most valuable asset of the Company.

Its objective is to encourage each area within the same unit to actively take part in the process of improving the work environment.

Employees from different areas must ensure the effective communication of engagement activities and initiatives.

Engagement

9 7

People & Management prepares a brainstorming-based Action Plan, in a way to make sure that employees’ opinions are taken into account and the continuous improvement of organizational environment and health are being followed up.

The Action Plan is released; then, it is monthly monitored by the PMO in accordance with the activity and action timetable.

PMO’s goal is to implement a routine to carry out the action plan follow-up. This also provides the opportunity for different areas to share their best practices.

For the purposes of improving the results of the engagement survey, taking into account the active involvement of employees, there is a Committee in which all the areas of the Company are represented. It is also a permanent communication link between People & Management and the other areas.

Creating an Action Plan

Communication and Follow-Up of Action Plans

PMO Engagement Management

Engagement Committee

Employees from all the areas of the Company make up the Committees. Their main duties are monitoring the improvement plans and serving as permanent communication channel to receive teams’ feedback.

9 8


Tool designed for culture consolidation that enables the leader to have a closer approach to his team, identify opportunities, and communicate the Company's values.

This tool is essential for reinforcing the people strategy in the core of the business.

9 9

Leader’s Agenda

Coffee with the Leader is an activity to get to know one another and inspire; it provides the leader the opportunity to make his team feel special and recognize positive achievements.

The leader speaks constructively and honestly, while his team members take the opportunity to make questions.

FrequencyMonthly (April-Dec)

ParticipantsSelected employees take part in this activity.

This activity promotes contact with people from Sales, Manufacture and Logistics, the routes where things actually happen, and a closer approach to the staff and the needs of the specific area.

FrequencyQuarterly (during each quarter one route to each, plant, logistics, and sales, must be completed.

ParticipantsThe leader and his first line in plant, manufacture and sales.

Strategic meeting to gather talents and their leader. These talents are qualified 1, 2 and 3 in the people cycle.

FrequencyThree times a year.

ParticipantsTalents and leader of the unit.

A talk in which the leader’s culture is conveyed to his or her immediate superiors, stressing out corporate attitudes, experiences, beliefs, and values.

FrequencyMonthly, at the time of setting SDG.

ParticipantsLeader and his or her immediate superior.

There is a celebration of the Company’s culture with activities that promote cbc’s values. The unit leader must stress out the importance of this day and lecture on the Company’s culture.

FrequencyAnnually, in August.

ParticipantsEveryone in the Company.

Activities in Leader’s AgendaEach leader has received an agenda that specifies the different activities to be carried out. It is a step-by-step guide with a calendar that includes presentations and videos on the Company’s culture that can be communicated to the employees.


It involves specific measures that award merits to outstanding employees for their accomplishments or achievements in the Company.

ANNIVERSARY IN THE COMPANY

CULTURE OFRECOGNITION

NEW MEMBERSOF THE FAMILY

EMPLOYEE OF THE MONTH

Annual recognition is granted to each employee, honoring his or her dedication and passion to compliance, culture and achievement of goals within the Company.

Once a year, People & Management organizes a special event to recognize those who have worked for more than ten years as members of cbc’s family. The spouse of the awarded employee also takes part in the celebration, as a gesture of recognition to the family as part of the support team of the employee.

The Company gives special recognition to those who have recently joined the Company, with actions and activities aimed to introduce and bring them together with other team members, which fosters team integration.

This recognition is monthly awarded to team members who have excelled in their performance in sales, operation and manufacture areas.

RecognitionManagement

1 0 0


We wish to convey our corporate values, ensure that we all live cbc’s culture to the fullest, and achieve transparent, swift and effective communication with employees, in order to have a motivated, happy, successful, and productive team.

DIÁLOGOS APEX TV TOMA VIDAMAGAZINE YAMMER NEWSLETTER

This is the Company’s official information capsule to communicate the most important and consequential news of business units.

diálogos is the name of the monthly meeting that CEOs, together with business-unit leaders, hold to convey to the entire organization different messages regarding corporate culture, results, news, and general guidelines.

This is company’s print media to disclose news about goals, programs, business expansion, portfolio novelties, events, and people that are significant to cbc.

An advanced, easy-to-use social network that is integrated to cbc’s existing solutions.

Through this newsletter cbc communicates the most relevant facts as to programs, campaigns, events, and projects of the Company.

In-House CommunicationMeans

1 0 1


This tool allows the company to standardize the performance of engagement activities in all business units of the Corporation, as well as to standardize the management of the engagement committee’s projects and performance.

Main Goals of the Engagement Survey

Identification of NeedsAnalyze the results of the survey.

Identify primary needs and critical points based on results.

••

Action PlansBuild action plans for each area and operation, as well as an overall corporate plan, based on the primary needs that were identified.

•

Communication of Results

Communicate the most important results of the survey.

•

Communicate the action plans to cover the critical points.

•

Follow-UpFollow up action plans in engagement PMO.•

Communicate the progress of action plans on a regular basis.

•

EngagementSurvey

1 0 2


1 0 3

Mid-year survey that is conducted to measure the progress of action plans deployed with the general engagement survey. 2019 Results

Main Goals of the Engagement Survey

Identification of NeedsAnalyze results of the light survey.

Identify which actions must be brought to the fore.

••

Action PlansFollow-up of matters stipulated in engagement PMOs and consolidate progress.

•

Communication of ResultsCommunicate the main results of the survey to each head of area.

•

Communicate action plans to cover critical points.•

Follow-UpFollow up action plans in engagement PMO.•

Hub

Nicaragua

Corporate

Ecuador

Honduras

Guatemala

El Salvador

Peru

Jamaica

Beliv

Puerto Rico

99

93

90

87

86

85

85

84

83

81

77


EngagementSurvey

1 0 4

Freedom of Association andCollective Bargaining

cbc respects freedom of association, union affiliation, and collective bargain as fundamental rights of its employees, as set forth in Article 23 of the Universal Declaration of Human Rights and the International Labor Organization (ILO) Conventions.

In cbc’s operations there are ten union organizations with which the company maintains dialogue, concentration and collective bargain mechanisms in accordance with the terms of local legislation.

Countries with union organizations: Guatemala (1), Honduras (1), Nicaragua (2), Peru (2), Jamaica (2), and Puerto Rico (2).

Percentage of Union Affiliation

GuatemalaSindicato de trabajadores deEmbotelladora La Mariposa, S.A.2018: 0.52%2019: 0.52%

HondurasSindicato de Trabajadores de la Industria de la Bebida y Similares2018: 58.3% 2019: 58.3%

Unión of Clerical Administrative& Supervisory Employess 2018: 7.05%2019: 7%

JamaicaThe Union of Technical Administrative & Supervisor Personnel2018: 63.01%2019: 59%

Puerto RicoSindicato Movimiento Solidario Sindical 2018: 55%2019: 55%

La Unión de Tronquillistas2018: 15%2019: 15%

NicaraguaSindicato Democrático de Trabajadores en ENSA2018: 6.4%2019: 6.4%

Sindicato Democrático de Trabajadores de ENSA2018: 8.3%2019: 8.3%

PeruSindicato Nacional deTrabajadores de cbc Peruana, S.A.C.2018: 0.52%2019: 0.52%

Sindicato Único de trabajadores de cbc Peruana2018: 20.77%2019: 20.77%


13.5%

1 0 5

Employee turnover is the number of employees that leave the Company versus the total staff of the Company during a particular period.

In order to understand the causes of former employee’s leaving, whether voluntarily or not, cbc analyzes staff turnover in its operations in different countries as well as in each of its areas. Exit surveys and consultations are also conducted with leaders of the areas corresponding to the former employee, which enables cbc to objectively identify the causes of his or her leaving.

All the information collected through interviews, together with the complementary data made available to the Company through surveys on satisfaction and adherence to corporate culture, supports the taking of measures required to strengthen talent-retention strategies and improve recruitment and selection processes, as the case may be.

Turnover

2016 2017 2018 2019

14.7%12.9%

10.2%


1 0 6

Employees hired in 2018 and 2019 were the following:

NewlyRecruited Employees

Age Range Women WomenMen Men

2018 2019

Under 30

Between 30 and 50

Over 50

Total (by Sex)

Overall Total

83

-

236

1484

153

394

-

1248

854

98

-

288

1622

190

468

4

1334

862


1 0 7

Employees The following charts show the different categories of employees within the organization in 2019:

88%

Women

Men

-20

20-30

30-40

40-50+ 5040%

34%18%

8%

0%

Sex Age Range

0%Apex Beliv CLC Corporative Ecuador El Salvador Guatemala Honduras Jamaica Livsmart Nicaragua Panama Peru Puerto Rico Puerto Rico

HubUruguay

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Executive Positions Administrative Analyst / Coordinator Operational - Commercial Operational - Manufacture Operational - O&S

12%

70%88% 80%

20%

91%74%

22%

4%

9%10%2%

32%21%

4%

36%

36%29%

21%

16%

41%

18%

5% 1%

12%

19%

58%

5%

1%

19%

74%

3%

1%

17%

30%

23%

23%

6%

27%

39%

9%

15%

4% 1%

14%

12%

35%

30%

15%

28%

35%

19%

3%

19%

18%

39%

16%

47%

16%

1%1%5% 7% 4% 4% 7% 8%

7%

6%

9% 4%

21%

25%6%

23%


41%

59%

Women inDecision-Making Positions in cbc

Percentage of women in decision-making positions in cbc, who are increasingly playing a more active role in the Company.

1 0 8

42% 44% 38%


OccupationalHealth and Safety14GRI 403-1, 403-4, 403-5, 403-7, 103-1, 103-2, 103-3Global Compact – Principles 1 and 2 Global Compact – Criterion 6


Health and SafetyPolicy

The Health and Safety Policy sets out a prevention and awareness program to prevent and minimize occupational risks inherent to the activities carried out in cbc, by implementing safety and hygiene regulations in all of cbc’s facilities. This policy applies to all operations, affiliates and subsidiaries.

The policy covers all of cbc’s operations, including all manufacturing and logistics areas, from the purchase of raw material to the warehousing of product in the agencies.

cbc is committed to identifying and controlling occupational risks inherent to the development of operations, while ensuring safe and healthy working conditions to duly trained staff, thus complying with the applicable legal and other requirements accepted by cbc in terms of health and occupational safety to protect the health and life of employees, shareholders, contractors, suppliers, and visitors.

Continuous improvement is always ensured by means of the Health and Safety Policy.

Foster commitment and compliance with the Policy, in-house procedures, and legal and other requirements established in each country.

Guarantee that the Health and Safety Policy terms are visibly displayed at the main entrance door of production plants and agencies.

Roles and Responsibilities

Plant/Operations and Services/Commercial Managers

Make sure that the Policy is signed in a hard copy that can be reproduced, in a way to comply with communication regulations.

Guarantee compliance with the Policy by monitoring the implementation of the 2020 safety strategy.

People & Management Director

Guarantee that the Global Health and Safety Policy be included as part of the Company’s Inycie.

Local People & Management Manager (plant, country or cluster)

Guarantee that the Global Health and Safety Policy be included in the annual training plan that covers all plant and agency staff, including outsourced personnel.

Staff Responsible for OHS in the Country

Guarantee that contractors comply with contractors’ safe management procedure.

Service Procurement Agent

Pre-qualify contractors and guarantee their suitability. Comply with contractors’ safe management procedure.

Local Purchases

Ensure compliance with the Health and Safety Policy; lead the OHS strategy and ensure continued improvement in terms of OHS.

Regional Health and Safety Manager

Promote the commitment and compliance with the Policy, in-house procedures, legal and other requirements established in each country.

Directors/COE's VPs

1 1 0

•

•

•

•

O C C U P AT I O N A L H E A LT H A N D S A F E T Y

The Policy is designed to guarantee safe and healthy operations for all employees, contractors, visitors, and other stakeholders, by operating with the highest global health and safety standards with full observance of the legal requirements in each country where cbc has operations.

Objectives

Identify possible hazards and risks in order to adopt

the corresponding measures

Comply with legal requirements applicable to occupational health

and safety

Provide safe and healthy environment

Guarantee health maintenance

Safe Working Attitude

OccupationalHealth and Safety

1 1 1


The Legal Matrix on Health and Safety is a format in which the legal requirements applicable to each of the operations are identified. This matrix is the compliance guide that includes measures and actions to be implemented in all operations.

The international rules or standards used as reference to establish measures to be adopted in each operation are those of the:

Local Regulationsand International Standards

Legal Requirement Matrix

International Standards

Safety Committees

Compliance with local regulations is a must. Unsafe conditions and actions must be identified so that the Company can immediately apply corrective measures, establishing processes, facilities and qualified staff in accordance with the regulatory requirements and international health and safety standards.

Each of the working areas has committees in charge of promoting and managing risk prevention at all the facilities. Committees are organized in accordance with the regulations of each country and are duly licensed by the corresponding authority, if necessary.

National Fire Protection AssociationNational Institute for Occupational Health and Safety Occupational Health and Safety Association American National Standards Institute

This tool measures safety level in production plants and distribution agencies, based on compliance with inspections and trainings. It fosters corrective actions in occupational health and safety matters, in order to improve the safety level in the facilities. The Safety Level indicators must be visible at production plants and agencies as part of the improvement commitment.

Safety Level

These inspections are conducted in order to establish compliance with requirements and best practices for preventive maintenance; while regular inspections to equipment critical to occupational health and safety are conducted to ensure that the operations are reliably carried out.

Inspection of Critical Teams

Provide employees and contractors with the basic safety guidelines that must be observed in operations at all business unit facilities, ensuring effective controls to minimize risk and guarantee compliance with occupational health and safety standards.

Ensure compliance with the Infrastructure Manual and the appropriate safety and environmental requirements.

Basic Safety Requirements

Occupational Health andSafety Infrastructure

1 1 2



Management System

cbc has adopted the Occupational Health and Safety culture by implementing the management system with policies, procedures and standards that guarantee risk identification and control, as well as by establishing safe conditions for employees, visitors, contractors, and other stakeholders. The processes are based on and comply with international standards. Such processes also meet or even exceed the local requirements in countries where cbc operates.

As of 2014, the Safe Working Attitude campaign was implemented. This has represented a 76% decrease in disabling accident incident, which turned cbc into a proactive company instead of a reactive one. In April each year, the corporate safety campaign is launched in all the countries where cbc operates; its safety approach is based on behavior (Safe Working Attitude).

1 1 3


Heath and SafetyPillar

The Health and Safety pillar is designed to guarantee safe and healthy operations to all employees, contractors, visitors, and other stakeholders, while working in line with the highest global standards on Health and Safety and complying with the legal requirements of every country where cbc operates.The pillar has four levels: foundations, sustenance management, improvement management, and dream.

Health and Safety foundations ensure compliance with legal requirements and international standards, basic safety requirements, inspection management, and safety level.

Sustenance management focuses on incident investigation as well as on occupational hygiene and health.

Improvement management deals with Health and Safety KPI´s.

Lastly, the dream is to have a zero-incident Company and become leaders in Health and Safety in the region.

Occupational Healthand Safety Pillar Pyramid

1 1 4

Safe Circulation

Training andCompetence

IncidentInvestigation

Correctiveand Preventive

Measures

KIPsManagement


CommunicationInternal

and External Auditing

Basic SafetyRequirements

Local Regulation and International

Standards

ContractorsManagement

MachineSafety

SafetyLevel

RiskManagement

ImprovementManagement

SustenanceManagement

Foundations


In order to guarantee compliance with Health and Safety processes, 100% of the employees have been trained in compliance with the occupational health and safety manual for factories, agencies, and distribution centers. cbc has also prepared a manual explaining what to do in case of an earthquake.

Manuals include standards to be observed for safe and healthy operations. All the operations and staff of the organization are familiar with this material.

Health and SafetyManuals

1 1 5


cbc’s management system uses EHS Tracker, a technological platform that ensures the control of legal requirements, monitoring tools to investigate and manage incidents, review of strategic KPIs, and benchmarking among factories and agencies of the corporate group.

The Health and Safety Management System is implemented by means of this tool, which allows all leadership levels to have a real-time view of any workplace region or country. The System is designed to send alerts to specific groups whenever a change may occur in the legislation or control on occupational health and safety.

TechnologicalPlatform

1 1 6

SafetyManagement


CaseMonitoring

The platform allows the monitoring of:

1 1 7

Incident Reports

Occupational Health and Safety

Environmental Incidents

Vehicles and Others

Automated Notifications

Medical Treatment Documentation

Reportable Incident Classification

Root-Cause Investigation

Documentation of Findings

Review by Top Management

Referral for Corrective or Preventive Action

Exportable Incident Report

Update of Incident Metrics


GRI 102-2, 102-6

IncidentInvestigation Process

1 1 8

Safety and Environmental Incident Investigation

Automated Notifications

Identification of Unsafe Actions and Conditions

Determining and Documenting Root-Cause

Setting up Parameters with Apex-cbc Methodology

Notification of Safety or Environmental Alert Report


Time Line During the 2014-2019 period, the occurrence of LTIs (lost time injuries)has decreased by 69%, despite the increasing size of the Company’s operations.

1 1 9

2015

2014

Reactive Attitudetowards Incidents

Health and Safety Management Implementation

Reduction of LTI (Lost Time Injury) Occurrence

2016 2017 2018 2019

20162014 2015

318

97

2017 2018 2019

Reactive Proactive

ProactiveReactive


Types of Incidents andFrequency Rates

1 2 0

2018YTE2017YTE 2019YTE

Supply

2018YTE

2017YTE

2019YTE

16 13

20

O&S

2018YTE

2017YTE

2019YTE

4541

38

Administration

2018YTE

2017YTE

2019YTE

32

0

Marketing

2018YTE

2017YTE

2019YTE

36

59

34

Total cbc LTIs

2018YTE

2017YTE

2019YTE

89

122

96


The telemetric system provides the following results:

TelemetryProcess

The telemetry process involves the following:

Vehicle exceeds speed limit

GPS device sends notice of incidence to call center platform of satellite tracking

Status validationReminder of speed limit

Driver receives notice and reduces speed

Notification of incidentRecord of incident

Report of incidents per vehicle per region, within a specific period

Speed ControlKey Performance indicators

1 2 1

Real-time monitoring of speed KPIs

Weekly and monthly report of speed KPIs

Actual-location tracking of vehicles


Incident-prevention tips and recommendations for a safe Easter Week.

Tips to prevent accidents:• Attentive driving• Maintain a safe distance• What is the proper way to apply the brakes

Workplace Risk-Prevention Program that involves the following types of hazards:

• Physical • Electrical • Mechanical

• Biological• Ergonomic

• Chemical• Physical/Chemical

As part of the OHS strategy, the Company’s safety culture is reinforced through official briefings made available through posters in factories and agencies where cbc operates, in order to spread awareness among employees and contractors.

SafetyBriefings

Driving Safelyin the Rain

A SafeEaster Week

Risksat My Workplace

1 2 2


• Course on lockout/tagout of hazardous energy

• Course on hazardous work activities

• Safety Brigades Course

• Earthquake reaction training

• Risk assessment training

• Safety tips for truck driving

• 360º Inspection

• Safety level

• Safe truck driving

• Emergency drill

• First Aid Brigade

• Safety in the event of an earthquake or hurricane

• Motorcycle academy

• Work safety attitude

• Take curves carefully

• Driving in the rain

• Motorcycle drivers were certified in safe motorcycle driving

Apex University and the Safety Academy have designed training activities to reinforce safe work procedures in all the areas of the Company: administration, manufacture, logistics, and marketing.

In-class and online training have been developed through the e-Learning platform.

Compliance with safety training at each area and workplace is weekly evaluated by safety-level measurement.

In 2019, 46,525 hours were invested in Health and Safety training.

Training

Critical Health and Safety TrainingAmong other courses, this training includes:

1 2 3

Marketing Manufacture Logistics Administration


cbc has implemented the monitoring of preventive indicators of its Health and Safety Management System.

Adherence to Health and Safety Pillar: monthly measurement of average adherence to the Company’s OHS procedures.

Safety Level: compliance with the Health and Safety routine is monthly measured by workplace; nonconformities are corrected; safety inspections at each area and training activities are also conducted.

Action Plans: monthly assessment of commitment completion regarding action plans for a specific period.

PreventiveSafety Indicators

1 2 4

CONTROL KPIs

SafetyLevel

ActionPlans

Adherenceto Pillar

TotalAverage

01 02

03

04

05

060708

09

10

11

SafetyTraining

Plan

Identificationof hazardous

work activities

WorkSafety

AttitudeCampaign

Health andSafety

DeviationAnalysis

Excellenceand

AdaptationDiagnosis

New Questionsand Evidences

Hazardand Risk

Identification

AnnualEmployee Health

Monitoring

Annual Monitoringof Environmental

Pollutants

Validationof Contractors’Competence

OperationsExcellence

Zero IncidenceOccupational Health

Setting KPI and Goals

RiskCommunication

12

HEALTHAND SAFETY

CYCLE

95% 94% 93% 94%


The Company has a bipartite (employee-employer) process and committee in 100% of its work centers (factories, agencies, and administrative offices) in all countries where cbc operates. The committee holds monthly meetings and is actively involved in decisions regarding occupational health and safety in the workplace.

Each and all of our employees belong to a unit with a formal safety and health committee.

EmployeeRepresentationin Committees

None of our employees are exposed to uncontrolled risks or involved in high-incidence activities or at high risk of disease.

All members of cbc’s staff were trained in global safety, health, and environmental policies, and are familiar with the manual on safety and health in agencies and factories. ll union-affiliated employees in the corporate group are bound to comply with the safety and health manual defined for cbc’s staff, as it defines standards and processes that must be implemented to guarantee the health and safety of our people. The collective bargaining agreement includes clauses that reinforce the obligation to comply with these rules.

Employees inHigh IncidenceActivities

Health Mattersunder FormalAgreements

1 2 5


TruckTelemetry

SAFETY

Telemetric technology allows monitoring and controlling our truck fleet to manage safety.

The monitoring area is responsible for the GPS tracking of 90% of the pre-sales delivery truck fleet, provides support in the event of an incident, and renders reports on efficiency controls.

This technology-supported monitoring allows real-time tracking of cbc’s truck fleet.

1 2 6

Support in the event of incidents

Response when panic button is pressed

Accidents Mechanical failure


EnvironmentalSustainability15GRI 301-3, 103-1, 103-2, 103-3GRI 302-1, 103-1, 103-2, 103-3GRI 303-5, 103-1, 103-2, 103-3Global Compact – Principles 7, 8, 9Global Compact – Criterion 9, 10, 11


EnvironmentalPolicy

cbc’s Environmental Policy establishes general guidelines regarding the environmental performance of the organization, defines a structured framework, and sets environmental goals.

Comply with all environmental laws and regulations applicable in each of the countries where cbc operates.

Produce and Distribute our products in an environmentally responsible manner, keeping our commitment with quality, optimizing the use of water, reducing energy and fuel consumption, and reducing emissions into the atmosphere.

Incorporate environmental considerations to strategic planning, decision-making processes and day-to-day activities by adopting the best practices. Incorporate environmental goals to performance assessments and deploy the goals at all levels.

Raise Awareness among suppliers, clients, customers, community-based organizations, and other key groups by means of cbc’s environmental programs.

Reduce, Reuse and Recycle in all industrial, distribution, marketing, and administrative processes, minimizing waste generation by means of a comprehensive management of resources.

Conduct Assessments on a regular basis, identify best practices, and communicate cbc’s environmental performance.

E N V I R O N M E N TA L S U S TA I N A B I L I T Y

1 2 8

EnvironmentalSustainability

cbc relies on an Environmental Management System to ensure continuous improvement, conservation and optimization of resources, reduction of environmental impact, and promotion of environmental culture in the Company.

There is an internal commission in each production plant that defines action plans through PDCA, reviews and monitors environmental indicators, significant impact, and excellence programs. There are also environmental procedures in place.

In 2019, cbc’s operations assuredly complied with environmental parameters by adopting routines and the appropriate management to guarantee that applicable regulations as well as local and corporate standards were observed and met.

During 2019, the Company focused on managing the existing systems, implemented in previous years, to guarantee not only compliance but also continuous improvement.

1 2 9

EnvironmentalCommunication

and Training

Conservation of NaturalResources

Legal RequirementManagement

Assessmentsof Environmental

Aspects

EnvironmentalRisks and

Nonconformities

ByproductControl

EnvironmentalIndicator Control

Installation and Control of Environmental

Containment Systems

Wastewater Control

EnvironmentalPolicy

Environmental Control

Assessment


Measures Adopted to ReduceWater Consumption

Water ConsumptionThe Company is progressively implementing the use of flow meters to control water consumption for each production stage. These meters are inspected every six hours in order to identify any inconvenience with the equipment.

The Water Usage Indicator is daily calculated at all cbc plants; this is a ratio of the total liters of finished beverages produced to the total liters of water used in production.

Two of the most important resources used in cbc’s operations are water and electricity; as a result, we have adopted a series of processes aimed to control, reduce and optimize consumption.

Moreover, the indicator is disaggregated by production lines, in order to have a more rigorous control over each line (canning and glass or PET bottling). The results are daily communicated to the staff responsible for each area, for review.

The Water Committee holds monthly meetings to review the trend of the indicator and define new measures that will allow reduction and optimization of water consumption. Actions are assigned to responsible staff with due dates to guarantee they are carried out within a specified period.

Training sessions are organized to be held on internationally celebrated days, such as World Water Day, World Environment Day, and Earth Day, raising plant staff ’s awareness of the importance of this vital resource.

1.

2.

3.

4.

1 3 0


Water

Jan2019Real

Feb Mar Apr May June July Aug Sep Oct Nov Dec2018Real

In 2019, cbc reduced its water consumption. It dropped from 1.999 to 1.988 L consumed per L produced. The Company will continue with its efforts to achieve more efficient use of water.

Water ConsumptionConsumed L / Produced L

1.999

1.9882.107

2.060 1.921

2.049 2.042 2.102 2.077 2.007 1.962 1.9251.888

1.778

1 3 1


There is wastewater treatment in 100% of cbc’s operations, not only in production plants, but also in distribution agencies, in compliance with the applicable laws and regulations of the countries where cbc operates.

The Company has established strict effluent-discharge parameters exceeding the local statutory ones in most of cbc’s countries of operations.

cbc’s concern is that operations cause a lesser impact, with low energetic consumption, low generation of noise, and an environmentally integrated solution to visual pollution.

Industrial EffluentTreatment

Wastewater Treatment PlantOperationscbc’s production facilities have wastewater treatment plants. Their operation is based on an aerobic biological treatment with activated sludge and membrane ultrafiltration to guarantee the appropriate wastewater treatment in compliance with local legislation guidelines and cbc’s standards.

The Company has duly equipped laboratories to perform the daily analysis for process control. Moreover, cbc requests analyses from certified laboratories to verify compliance with statutory and regulatory parameters.

Local statutory guidelines as well as cbc’s internal requirements are fulfilled by operating wastewater treatment plants.

Whenever necessary, expansion works are carried out to have the existing treatment plants in line with production volume.

1 3 2


cbc complies with local legislation in terms of wastewater treatment requirements. Each and all of cbc’s factories ensure compliance with wastewater discharge parameters.

Water Discharge by Destination,Quality and Type of Treatment

Wastewater treated 2,563,510 m3 99.38%*

Total wastewater generated 2,579,443 m3

*0.46% of wastewater generated: in connection with purified water production processes

1 3 3

Description Quantity Measure Unit Percentage (%)

Description Quantity Measure Unit Percentage (%)

2,177,898 m3 85%

Water treated by third parties in accordance with local laws 385,612 m3 15%

Water treated by cbc


cbc calculates the Energy Indicator of all plants, which is the ratio of electricity consumption to the number of eight-ounce boxes produced. For this Indicator, an annual reduction goal is set which forces us to implement new technologies and to optimize the performance of the equipment in order to reach the established objectives and goals.

In terms of equipment optimization, the main focus has been in modulating of compressed air and refrigeration equipment. This is done by a detailed analysis of the planification and the demand of the production plant in order to work with the equipment at a power that allows to generate only the necessary air and avoid waste which impact in higher energy consumption. Additionally, parameters were set in the operation of the air conditioning of the different areas, establishing start-up and shut-down times.

As to the implementation of new technologies, traditional fixtures have been replaced with LED, and lighting controllers which control the times for the network to turn on and off have been installed.

EnergyConsumption

1.

2.

3.

1 3 4


This campaign is aimed to raise awareness among the Company’s operations, invest time in correcting energetic waste in production and generation equipment, educate the staff in the use and care of available resources, and involve every officer in having an environmentally responsible company.

Despite being a one-day event, this awareness campaign requires extensive planning, from measuring current consumption, identifying leakages and inappropriate practices, material planning and supply, communication campaigns, adjusting operational parameters, and modifying operational procedures which guarantee medium to long-term sustainability of environmental strategies.

Environmental awareness campaigns have been developed by means of publications and activities that strengthen cbc’s environmental culture.

AwarenessCampaigns

Energy Day Good Operation Practices - GOPs

Water ConservationCampaign

GOPs involve spreading good practices for sustainability, which allows the company to replicate the efficient and responsible use of available resources in all operations.

Good practices focus on using only the services needed in the productive process (compressed air, steam, electrical energy, refrigeration, efficient use of water, handling of chemicals, byproduct management, and lighting).

At cbc we have created a water conservation campaign in our operations where we guarantee good practices and controls by making each employee aware of their individual responsibility in taking care of water resources.

The water conservation campaign was implemented in all of cbc’s factories and work centers.

The Company has an ongoing analysis of the best technology to reuse water and reduce its consumption and, thus, improve cbc’s water footprint.

1 3 5

Leakage inspection map Consumption measurement,by equipment


Leakage repairsInternal CommunicationEnergy Day kick-off

During the 2018-2019 period, we have maintained a stable consumption, with a 3.14% reduction in cbc’s factories.

Electric Energy ConsumptionkW/ 8-onz box

Electricity in cbc Electricity in cbc

1 3 6

0.287

JanReal2019

Feb Mar Apr May June July Aug Sep Oct Nov DecReal2018

Real2019

Real2018

0.278 0.287 0.278

0.268 0.270 0.270 0.281 0.280 0.286 0.288 0.283 0.281 0.2850.279

0.263


cbc develops annual plans to reduce its electricity consumption, at the same time, establishing a renewable-energy percentage in accordance with each country’s energy matrix. In the countries where cbc operates their power generation, it is mostly done by hydroelectric power stations.

Energy Consumptionwithin the Organization

Energy intensity reflects the required energy corresponding to each operation unit, output or other measurement unit used. In such terms, the efficient use of company’s energy is placed in a context, which makes the Company comparable to others. It is a relative indicator obtained from the ratio of energy used to liters of beverage produced.

EnergyIntensity

Consumptionof Electricity

143,807,494.20 kW/year

Proportion % MJoules

Renewable 55.14% 285,482,322.45

Non-renewable44.86% 232,224,654.75

517,706,977.2

1 3 7

Material Quantity Measure UnitDescription

Description

Total Quantity

Indicator (MJ/L)

Measure Unit

Consumptionof Electricity

Liters of beverage produced

517,706,977.2

2,812,455,075.68

MJoules

Liters

Energy Intensity 0.18


Description Value Measure Unit

An organization’s ability to use energy efficiently becomes evident by reductions in its energy consumption. The consumption of energy has a direct effect on the company’s environmental footprint, operational costs, and exposure to fluctuations in energy prices.

Reduction inEnergy Consumption

1 3 8

Description Reduction %

PowerConsumption

in 2018

PowerConsumption

in 2019

0.287

0.278

kWh/year

kWh/year

Indicator Reduction 3.14


The Company’s consumption of bunker fuel decreased in the 2018-2019 period. As part of our expansion plan, the Company introduced a new steam-powered bottle filling production line. Despite having this new line incorporated to the production system, the Company’s bunker fuel consumption was reduced thanks to the implementation of programs for the efficient use of energy resources.

Bunker Fuel Consumption L of Bunker Fuel / 8-oz unit box

1 3 9

Bunker Fuel in cbc

0.020

Jan2019Real

Feb Mar Apr May June July Aug Sep Oct Nov Dec2018Real

0.017

0.018 0.018 0.018 0.0180.019 0.018 0.019

0.017 0.017 0.0170.015 0.015


Control of Emissions to the Atmosphere

Our plants have an annual environmental monitoring program that establishes the activities to be carried out in each environmental sampling and their periodicity.

Emissions to the atmosphere are controlled through periodical monitoring, by measuring the concentration of gas emissions to the atmosphere as a result of the production plant operations.

The number of sampling points is defined in accordance with the diameter of the boiler flue pipe. Variables analyzed in monitoring activities include speed, flow, gas charge, humidity, isokinetic sampling, combustion efficiency, excess air, and lack of air.

In countries without laws on emissions to the atmosphere, cbc has decided to be governed by the limits set by the IFC-World Bank.

cbc has invested and continues investing in new technologies to reduce emissions in the atmosphere. Currently, the Company is analyzing projects which contribute to the assessment of the carbon footprint in phase 1 as a pilot study at one of the factories of the corporate group.

Monitoring point determination

Gas speed and flow rate

Gas analysis and molecular weight determination

Humidity and particulate material assessment

METHODOLOGIES TOOBTAIN THESE VARIABLES:

MONITORED GASES INCLUDE:

O2 – Monitoring point determination CO – Gas speed and flow rate

CO2 – Gas analysis and molecular weight determination

PM – Particulate Material

SO2 – Sulfur Dioxide

NOx – Nitrogen Oxides

1 4 0


DynamicDispatch

This is the most efficient way to optimize and schedule deliveries to be made by the truck fleet with optimal timing, reducing emissions and fuel consumption.

The system that is being used in the Company consists of two software modules: one that optimizes the load capacity of trucks and another that develops logical, more efficient routes for the delivery of orders, which allows the Company to:

Enterprise Resource Planning ERP: SAP module for Customer Management. Roadnet: A tool for the tactical planning of daily routes that optimizes routes and truck capacity, which translates into meeting both customer requirements and expected profitability.

1 4 1

Save Time in RoutingNo more guessing on territory and route designFast assessment of multiple scenarios

Improve SalesAppropriate scheduling of visits to key accounts.Consistent compliance and improvement of service guidelines

Improve Customer’s ServiceBeing at the right time with the right productEasily cope with seasonal and holiday fluctuationsInclude exceptions in planning

Make Transport More Efficient Reduce mileage and, thus, fuel consumption and gas emissions.Use alternate routes

Improve the Sales Executive’s PerformanceFollow-up and comparison of actions planned and those that were actually taken.Provide key data of each order delivery

Save Time in Route GenerationGenerate faster, more efficient routesEasily import and export data

Takingorders

HH Downloadand SAP Upload

Releaseof orders retained

Warehousecount

DynamicDispatch

PrintingFL, truck load

vouchers

Printinginvoices, report on

vouchers, mapsstop listing


Dynamic dispatching optimizes delivery routes in accordance with previous volume of demand

Phases ofthe Process

Reduced distance travelled

Efficient scheduled routes

Reduced fuel consumption and gas emissions

Improved order delivery (improved customer’s service)

Balanced routes

Benefits of Route Planning

3 ReportDynamic Dispatch Fleetloader2Route Planning1

1 4 2

Fleetloader is a tool that optimizes the load in the delivery trucks, according to the volume of orders per route.

Reports generate result data for analysis, control and continuous improvement of delivery.


Annual Fuel Consumptionand Emissions

Consumption without DynamicDispatch and Pre-Sales in cbcOperations

Less km and emissions with dynamic dispatch:With the dynamic dispatch process, it is possible to achieve:

Reduced mileage and kg CO2eq

kg CO2eq Gallons of Diesel

1 4 3

30%

Improvement in scheduled routes

40%

Improvementin balancingclient/boxes

60%

TOTAL DAILY ROUTES AND KM DEC 18 - DEC 19

203,918.00

148,737.00

53,552.00

45,263.00

39,882.00

37,497.00

36,664.00

3,587.00

13,886,720.77

8,164,607.58

2,982,500.67

4,083,669.02

2,544,525.62

2,776,916.96

2,331,434.21

238,321.90

1,068,209.29

628,046.73

229,423.13

314,128.38

195,732.74

213,609.00

179,341.09

18,332.45

565,513.00 36,770,374.83 2,828,490.36

29,398,226

ROUTES KM Gallons of Diesel

19,858,010.70

11,675,388.84

4,264,975.96

5,839,646.70

3,638,671.64

3,970,991.25

3,333,950.92

340,800.32

1,527,539.28

898,106.83

328,075.07

449,203.59

279,897.82

305,460.86

256,457.76

26,215.41

52,581,636.01 4,044,741.22

WITHOUT DYNAMIC DISPATCH

42,039,461

Emissions (kg CO2eq)KM Gallons of Diesel

12,641,235.34 1,216,250.85

Consolidated Emissions (kg CO2eq) Jan 19 - Dec 19


Total weight or volume of materials used in producing and bottling the most important products and services of the organization:

Packaging Materialby Weight and Volume

1 4 4

Material Classification Origin Tons Units

PET Bottling

PRB Bottling

Plastic Cap

Glass Bottle

Crown Cap

Aluminum Can

Aluminum Can Cap

Label

Shrink Wrap

BiB Bag

Tetra Pack

Case

BiB Box

Tetra Pack Case

Plastic

Returnable Plastic

Plastic

Returnable Glass

Aluminum

Aluminum

Aluminum

Plastic

Plastic

Plastic

Cardboard

Plastic

Cardboard

Cardboard

Non-renewable

Renewable

Non-renewable

Non-renewable

Non-renewable

Non-renewable

Non-renewable

Non-renewable

Non-renewable

Non-renewable

Renewable

Renewable

Renewable 1,139,299.29

Renewable

57,159.00

304.33

4,819.22

856.50

4,249.91

1,059.53

1,018.32

6,035.70

-

-

620

-

-

8,610

2,238,501.03

-

308,547,142.00

14,259,354.00

-

-

-

-

-

-

-

-

-

Non-renewable Materials Used Renewable Materials Used


Returnability ofPackaging Materials

Percentage of RecycledPackaging Materials

1 4 5

Material Composition Amount (%)

% Recycled Resin

% Non recyclable Resin

11.46 %

88.54 %

Classification Total %

Returnability % 16.34%

Description Total Amount Measure Unit

Returnable bottleproduction

Total plant production

80,912,555.00

495,312,187.00

Caja 8 onzas

Caja 8 onzas


ByproductManagement

cbc uses a production process outline and a waste sorting process to identify the byproducts that are generated and separates them from regular waste.

Agencies and production plants have a byproduct classification system in place that uses bins to classify cans, glass bottles, PET, sacks, HDPE plastic containers, barrels, cardboard, nylon, caps, straps, Tetra Pack, and wood pallets, among others.

Process Outline and Byproducts:

ByproductClassification:

The predominant byproducts generated from cbc´s operations are: glass, wood, cardboard, PET, nylon, and PRB, among others.

RecycledMaterials:

Our recycling selection and certification process ensures that recyclers have the corresponding environmental licenses and correctly manage byproducts, transforming them into raw material for external processes. Prices and recyclers are approved by a Byproduct Committee, comprising representatives from the Operations, Purchasing, Manufacturing, Environment, Finance, and Auditing areas.

RecyclerManagement:

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Percentage of Recycled Byproducts

1 4 7

24.5%

18.3%

14.9%

12.4%

8.2% 7.9%

3.5%1.8% 1.3% 1.1% 1.0% 1.0% 0.8% 0.7% 0.5% 0.4% 0.4% 0.3% 0.2% 0.2% 0.2% 0.2%

GlassPlastic

Wood PET

CardboardGarbage

Scrap metal

Batteries

PHDPE Plastic PRB

Obsolete Furnishings

Organic matter

LDP Plastic

Polypropylene

AluminumOthers

Preform

Hazardous Materials Paper

CapsSacks

Polycarbonate0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

cbc’s 2019 Recycling Classification


Hazardous Waste Treatment

As a food and beverage company, cbc considers as Special Waste the one generated by the employee health clinic as well as others such as industrial maintenance greases and oils for the maintenance of cbc’s own fleet, which final disposal is carried out by third parties holding the appropriate environmental permits and licenses.

Transport ofHazardous Waste

The 0 Waste to Landfill Methodology unfolded in 2019 as a pilot test in the Mariposa and Cuyotenango factories in Guatemala and the Machachi and Guayaquil factories in Ecuador, classifying waste in order to certify factories in Guatemala and Ecuador under the Carbon Trust “Zero Waste to Landfill” Methodology in 2020 and 2021.

Waste Type andTreatment

19,651.27

RecyclableWaste 17,863.25 Ton 90.90%

Non-RecyclableWaste Ton1,732.50 8.82%

HazardousWaste Ton55.52 0.28%

100.00%

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Description Amount MeasurementUnit Percentage(%)

Treated Hazardous Waste 55.53 Ton 100.00%

HazardousWaste Ton55.53

Description Amount Measurementunit Percentage (%)

100% of waste is managed through a contractor holding environmental license for its ransport, treatment and final disposal.


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We support the aim of our strategic partner, PepsiCo, to exceed the 30% recycled-content threshold in our PET containers by 2025. Likewise, we will continue to participate in projects and programs contributing to the recovery of post-consumer containers and to strengthening micro and small-scale business owners engaged in the recycling industry.

We also share the same objective as our strategic partner Beliv, which launched one of the first 100% recycled resin bottles for its Aqua brand.

Recycled Resin


Energy and EmissionReduction

General Outcome of this Reduction Measure

Since 2016, cbc has implemented ECR-motor technology that has increased energy efficiency in its cooler inventory. The benefits of this technology in the Company’s refrigeration equipment include:

Between 2016 and 2019 this type of motor was installed in over 66,000 coolers, representing 37% of our total inventory.

A cooler with this technology saves up to 607 kwh per year.

Switching all of cbc’s refrigeration equipment to ECR will be completed in 2022.

Lower maintenance costsSaving in spare-part purchases as compared with former motors

Better/Improved customer satisfactionReducing energy consumption

Environmentally friendly operationsUsing less energy and producing a lower environmental impact

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Comprehensive Service Planfor Refrigeration EquipmentThe Comprehensive Service Plan was especially developed to control and organize the comprehensive service system for refrigeration equipment, so as to guarantee compliance with labor standards by those suppliers selected to provide their services to the Company and ensure their commitment to the environment.

The following objectives will be sustainably achieved by:

Controlling and reducing asset loss in terms of refrigeration equipment and spare parts.Increasing control and efficiency where the refrigeration equipment is installed to enhance sales. Ensuring savings by controlling and managing refrigeration equipment maintenance expenses.Protecting the environment and investments by extending the lifespan of assets through both preventive and corrective maintenance, as well as plans to rebuild equipment in compliance with environmental regulations.Controlling environmental risks when the time comes to discard the equipment.

The plan focuses on achieving the three “A’s”:

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1.2.3.4.

5.

Based on the data provided by the log, discover the deficiencies, identify the strengths, and locate the problems in order to turn them into opportunities.

Automation, classification and encoding to improve the control and efficiency of refrigeration equipment distribution.

Enhance good practices, identify key elements to implement strategies to attract new and existing clients by increasing the service level and transforming the problem into a solution.

Analysis Administration Addition


Technology Benefittingthe Environment

The EHS TRACKER technology favoring the environment allows us to guarantee real-time control of the Environmental

Management System in all of the group’s operations.

This tool enables the online tracking of environmental processes to ensure the fulfillment of legal commitments and impact reduction goals set by the Company.

It also allows the environmental management process to be tracked by those responsible for such process.

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Real Time Recording of

Water, Power and Fuel Usage

Compliance Matrix of Environmental

Laws and Regulations for each country

Environmental Impact Studies

Inspection and Auditing

Procedures

Solid Waste Management

Environmental Permits and

Licenses

Environmental Commitments, Recording and

Compliance


PartnershipsContributing to SustainableDevelopment Goals16GRI 102-12, 102-13GRI 413-1, 103-1, 103-2, 103-3GRI 203-2, 103-1, 103- 2, 103-3Global Compact - Principles 1, 6, 8Global Compact – Criterion 15, 16, 17, 18, 21


The Sustainable Development Target We Seek to Achieve:

17.16 Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the sustainable development goals in all countries, in particular developing countries.

Partnerships for the Goals

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P A R T N E R S H I P S


2.2 By 2030, end all forms of malnutrition, including achieving, by 2025, the internationally agreed targets on stunting and wasting in children under 5 years of age, and address the nutritional needs of adolescent girls, pregnant and lactating women and older persons.

ZeroHunger

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ImplementingAprendamos Juntas Program

Municipality of San José Poaquil, Department of Chimaltenango, Republic of Guatemala

To provide continuity to the chronic malnutrition reduction efforts, in June 2017 cbc and Asociación Puente signed an agreement to implement the Aprendamos Juntas program, which began to operate that same month in San José Poaquil Chimaltenango, with the participation of 250 people, in addition to those of the Santa Apolonia program. The goal of this project is to improve the food-security and nutritional needs of women and their families; the target group includes children under 5 years of age, pregnant and lactating women and women in their reproductive years experiencing conditions of nutritional vulnerability in rural communities.

Six components will be worked on through this project in order to prevent chronic malnutrition: a) Strengthening family and community organizations to ensure self-management processes that prevent malnutrition and promote food security and nutrition; b) Developing the capabilities of women in reproductive age to prevent malnutrition in their children; c) Promoting the growth and development of children under 5 years of age; d) Promoting sustainable productive activities that improve the availability of food in the household; e) Promoting income-generating activities that impact the quality of life of women and their families; f ) Promoting basic health and home improvement measures to prevent illnesses in the family. The program continued throughout 2018 and 2019.

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Combating Anemiain Cieneguillo

In 2019, under the guidance of CARE Peru, cbc contributed to improve the living conditions of the residents of Centro Poblado Cieneguillo Centro, district of Sullana, Region of Piura. Through different activities, cbc continued contributing to the improvement of the general health conditions and focusing on reducing anemia in 140 children under 36 months of age and 20 pregnant women. In 2018, 88 children and 22 pregnant women, considered as new beneficiaries, participated in the Program. It is important to highlight that the beneficiaries of the program are locals with limited resources.

The Program had two goals: (i) to increase the consumption of iron-rich foods, ferrous sulfate and multi-micronutrients in children between 6 and 24 months of age; and (ii) to increase the consumption of iron-rich foods from animal sources and ferrous sulfate supplements in pregnant women.

To achieve the first goal, a plan to change the behavior of the residents of Cieneguillo was communicated. Mothers and caretakers were taught to prepare iron-rich foods and about the consumption of multi-micronutrients; informational and educational meetings were held at places for community social interaction to spread messages about preventing anemia. Capacity-building meetings were also held with health promoters.

Moreover, to achieve the second goal, analysis and reflection sessions were carried out regarding measures to prevent anemia in pregnant women.

After carrying out all this work focused on reducing and preventing anemia in this population with limited resources, the final evaluation of the participants in the Program found that over 44% of the children had normal hemoglobin levels compared to the levels they had at the beginning of the program, and were not anemic; and 66% of pregnant women had normal hemoglobin levels.

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3.8 Achieve universal health coverage, including financial risk protection, access to quality essential health-care services and access to safe, effective, quality and affordable essential medicines and vaccines for all.

Good Healthand Well-being

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In 2019, cbc continues partnering with Fundación Ayúdame a Vivir, as it has since 2001. This foundation has undertaken the challenge to support the attainment of resources that Guatemala’s Pediatric Oncology Unit (UNOP for its initials in Spanish) needs to operate. UNOP has become one of the region’s leading institutions for the treatment of pediatric oncology and provides free treatment for children facing this sensitive disease.

This initiative has a multidisciplinary team of professionals, including psychologists, nutritionists and social work specialists to offer guidance, advice and support to the patient’s parents and other family members. Medical follow-up is also provided to the children, for as long as necessary, through care combining medical and human quality.

Today, the average survival rate of children undergoing treatment is 70% and has achieved 99% adherence by patients in terms of completing their treatment. By August 2019, from a total of 8,814 children who have received care, 6,012 have been detected with cancer and 3,002 (who have undergone treatment) are cancer free.

Care provided to families includes a temporary home so that they are able to be close to their loved ones during their treatment and throughout the process.

The financial support provided by cbc to this substantive project exceeds US$6.6 million; the Company’s multidisciplinary team is also involved in volunteer work to improve the management capacities of UNOP in areas such as human development, technology and development processes.

cbc is part of Fundación Ayúdame a Vivir, Guatemala

cbc is aware that early diagnosis is essential to save children’s lives. Educational campaigns have been intensified to educate the Honduran population about childhood cancer. The Department of Education has joined cbc Honduras in launching the campaign “12 síntomas del cancer infantil” (12 symptoms of childhood cancer), in which the Department opens doors in education centers and cbc Honduras provides all the printed educational material. The campaign, focused on the central-southern area of the country, has reached 662 school principals, 60,955 teachers, 24,297 elementary and middle schools, and 1,686,997 students, and continues in 2019.

Fundación Hondureña para el Niño con Cáncer

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Through its Gatorade brand, cbc is committed to promoting a healthy and balanced lifestyle for its consumers, primarily through physical activity.

One of the projects developed by Gatorade is the 5v5 soccer tournament for youngsters between 14 and 16 years of age. This project continues in 2019 with the participation of teams from Guatemala, El Salvador, Honduras and Nicara-gua; the winners had the opportunity to travel to Madrid, Spain where they represented their countries in the world championship. The project made an impact on over 500 teenagers in the region who received talks on hydration and nutrition according to their age and physical activity.

Promoting Sportsand Physical Activityin Central America

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4.1 By 2030, ensure that all girls and boys complete free, equitable and quality primary and secondary education leading to relevant and effective learning outcomes.

4.4 By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship.

QualityEducation

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Tesalia cbc partners with Escuela Superior Politécnica del Litoral in the“Ecuador para el Mundo,” promoting young and inclusive entrepreneurship

The Contest Ecuador para el Mundo was created with the goal of promoting responsible and inclusive entrepreneurship among college students, and positioning Ecuadorian roots, origins and pride. This joint initiative of Tesalia cbc and Escuela Superior Politécnica del Litoral (ESPOL) seeks to recognize, reward and promote entrepreneurial developments that include a socially responsible execution and an inclusive economy.

Over 85 different schools of universities or polytechnic colleges in the country participated in Ecuador para el Mundo; 12 teams

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that met the country’s own characteristics and complied with the inclusive economic policies made it to the semifinals.

Beliv participated in the process of selecting the winning team and granting the “Ecuador Sostenible” and “Empecemos por Casa” honorable mentions.

The achievement of production linkage generating an inclusive economy was one of the goals of Ecuador para el Mundo.


The model strengthens and promotes the involvement of students, teachers and parents.

The dream of the school “Escuela Enrique Castillo Monge" emerged in 2016 with the goal of offering high-quality education

Technology

TeacherTraining

English

Nutrition

Music & Arts

Infrastructure

Sports

Ecology

Training for Teachers and

Principals

Schoolfor Parents

High-Quality Education

Infrastructure and Equipment

cbc continues to supportFundación Guatemorfosisin 2019.

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It promotes a common ground for nearby communities to meet.

The model combines high-quality academic education, innovation and technology with art development as elements for the development of individual and societal growth.

Sports are included as a source of wellbeing, health and discipline.

Students receive bilingual education to prepare them as global citizens.


Providing Relief after theFuego Volcano Tragedy

Support was provided to Fundación Guatemorfosis, following the tragedy, to extend the ECM Model to five public schools and two Technological Centers.

Our Educational CommunityNature took us by surprise on June 03, 2018 with one of the toughest challenges. The eruption of the Fuego Volcano, though not directly impacting the school facilities, did damage to the area making it inoperable.

222 5,000Students

at Enrique Castillo Monge

Students,5 Public Schools

and 2 Technology Centers

Appropriate Infrastructure

· Improving the conditions of the buildings· Increasing access to technology· Furnishing and creating modular and

technological classrooms· Equipping music and arts classrooms· Improving sports facilities

Quality Education

· Promoting high-quality education· Academic certification· Training Teachers: Mathematics, Reading, Science· Increasing students’ capacities

~ 2,250

~ 350

~ 565

~ 485~ 1,350

222EnriqueCastilloMonge

Our dream is to expand the coverage

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DeceasedChildren

5MissingChildren

8Children that migrated to other departments

7Children placed

in temporary shelters

200

Coverage

· Increasing the number of pre-school and elementary school students

· Increasing the number of female students· Reducing drop-out rate in elementary school

Empowering Women

· Technology-related work skills for youth and women· Job placement for women

Music and Art

· Building and equipping music and art classrooms


Approachto Education

The Scholarship Program for students at Colegio Técnico Agropecuario Genoveva German (Machachi, Ecuador) is granted to students based on their academic performance and the socio-economic reality of their family.

A process is in place to follow up on each student, so that they are able to stay in the program.

From 2017 through 2019, Tesalia cbc has provided scholarships (tuition) for over 60 students.

Scholarship Program for Colegio Técnico Agropecuario Genoveva German

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Cooperation Agreementwith the Department ofEducation of Honduras

cbc works with the Honduran Department of Education and the United Nations Population Fund –UNFPA– through the Aliados por la Educación program, carrying out joint initiatives to benefit the development of quality educational services, environmental education, access to safe water, nutrition, and recycling. This program also supports violence prevention and promotes schools as peaceful spaces for child development. The Cooperation Agreement was signed in April 2015.

With the purpose of creating awareness among the Honduran population on the importance of the early detection of childhood cancer, cbc partnered with Fundación Hondureña para el Niño con Cáncer and the Honduran Department of Education to create a training program for parents and teachers, to enable them to recognize 12 warning signs of this disease.

In its first phase –executed in 2017– the program focused on the province of Francisco Morazán and involved a 50-school educational community in the region. The following stage will begin in 2018 and expand the program’s impact to more areas in the country.

Follow up on the implementation of this important agreement was carried out in 2019.

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cbc participates in GuateFuturo and HonduFuturo, organizations that provide opportunities for young professionals to earn a postgraduate degree in the best universities in the world. This educational opportunity enables them to grow academically and personally and return to contribute to the development of their countries through their work.

Both organizations are recognized for promoting, guiding and financing professionals who want to study Masters and Doctorate Degrees through their Loan-Scholarship programs.

cbc continues to participate in GuateFuturo and Hondufuturo in 2019.

In 2019, 39 students joined the 12th generation of Guatefuturo’s Loan-Scholarship program and 26 students joined the 6th generation of the HonduFuturo program, to train in new areas of study.

The Loan-Scholarship program stands out for its functionality and transparency. It is a merit-based model in which anonymity and impartiality are maintained throughout the entire process. To this date, the investment made through GuateFuturo and HonduFuturo to finance the beneficiaries is close to US$11 million.

Postgraduate Scholarshipsand Loans in Guatemalaand Honduras

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cbc supports the greatestglobal startup systemImpaqto Lab Powered byGoogle Developers Launchpad

This national program designed for entrepreneurs that want to accelerate their business and generate a positive impact, joins Google Developers Launchpad to support the growth of the startup industry in Ecuador.

The “IMPAQTO Lab Powered by Google Developers Launchpad acceleration program connects IMPAQTO with an elite group of the top accelerators worldwide, enabling resource sharing and insight leveraging.

Google Developers Launchpad focuses on developing companies and empowering the startup community worldwide to share information and resources, without taking a stake in the startup companies that are part of their portfolio.

There are only 4 accelerators in the region that are part of this program; IMPAQTO in Ecuador is one of them.

Tesalia cbc is proud to be a part of this global startup ecosystem.

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5.5 Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life.

GenderEquality

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cbc, the first company in Guatemalato adhere to the UN’s Women’sEmpowerment Principles

cbc is committed to the Women’s Empowerment Principles (WEP) developed by UN Global Compact and UN Women, as a statement of their commitment to gender equality.

These principles represent the set of business practices to promote equality among women and men in all corporate management areas. They are, likewise, designed to assist companies upon examining the policies and practices they apply, or to create new ones.

cbc applies gender equality in all its operations, in terms of wages, benefits and safety. It also has career-planning policies for women and other benefits, such as special workdays for nursing mothers.

1. Establish high-level corporate leadership for gender equality.

2. Treat all women and men fairly at work.

3. Ensure the health, safety and well-being of all women and men workers.

4. Promote education, training and professional development for women.

5. Implement enterprise development, supply chain and marketing practices that empower women.

6. Promote equality through community initiatives and advocacy.

7. Measure and publicly report on progress to achieve gender equality.

The 7 Women’s Empowerment Principles are:

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6.6 By 2020, protect and restore water-related ecosystems, including mountains, forests, wetlands, rivers, aquifers and lakes.

Clean Water and Sanitation

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Water Funds are public-private partnerships created to develop impact mechanisms contributing to water security of the areas, determined through investment in natural infrastructure. The Water Funds are instruments designed to protect and preserve the aquifer recharge areas of specific basins.

In July 2005 the Water Protection Fund (FONAG for its acronym in Spanish) and Tesalia cbc signed an inter-institutional cooperation agreement to carry out activities that maintain and recover the aquifer recharge areas for human and productive consumption in the metropolitan district of Quito, and promote responsible behavior with regards to environmental conservation .

The Guayaquil water fund (Fondo de Agua de Guayaquil) also emerges in 2015 as a mechanism to receive, manage and channel resources for the preservation and restoration of the basin of the Daule River, which supplies water to Guayaquil. The agreement was signed by various private and public companies, as well as by the international organizations Banco de Desarrollo de América Latina CAF and The Nature Conservancy TNC.

Since March 2016, cbc participates in the Fondo de Conservación del Agua de Guayaquil, aiming to ensure the supply of quality water for different uses and, at the same time, protect and restore critical areas of hydrological importance for their appropriate conservation.

cbc supports the co-financing of actions that enable the implementation and management of projects approved for the conservation and restoration of the basin of this important river.

Water Funds

Ecuador’sWater Fund

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Protecting critical areas and restoring specific areas including those of riverbanks.

Implementing better production and land-planning practices focusing on the basin.

Combating sedimentation through reforestation and erosion-prevention measures.

Environmental education and awareness.

Monitoring the quality and quantity of water.

The actions of the Guayaquil Water Fund (Fondo de Agua de Guayaquil) include:

1

2

3

4

5

Recovering the vegetation cover with native species in areas near the bank of the San Pedro River (communities of San Agustín Bajo, San Agustín Alto, Colegio Genoveva German).As to community education, awareness was raised regarding a new water culture through recreational activities and a broad range of innovative learning resources, involving 100 new students that are now part of the group Guardianes del Agua. The vegetable cover education, communication and recovery programs operated in a 7 -kilometer radius from the San Pedro riverbanks. In 2017, a new cooperation agreement was signed with the objective of broadening the intervention areas near this river. These actions continue to be in place in 2019.

Some of the actions taken by the Quito Water Fund (Fondo de Agua de Quito) are the following:1

2


cbc participates in the “Fondo Ambiental para la Protección de la cuenca del Río Paute (FONAPA)" since 2019, working in conjunction with different associations, growers, and multi-stakeholders at the Paute basin to strengthen technical skills and management to preserve the water resources of the working ground that provides water to generate over 50% of Ecuador’s hydroelectric power.

The CuencaWater Fund

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cbc is a founding partner of the Fondo de Agua de Guatemala, Funcagua (Guatemalan Water Fund), which is legally established in 2017 as a private initiative: a stable, transparent and long-term financing mechanism enabling different stakeholders to join efforts to solve common issues relating to integrated water management.

cbc is part of the multi-sector platform that aims to promote the conservation, recovery and sustainable use of water resources for Guatemala’s metropolitan region, with the initial goal of implementing field actions in approximately 17,000 hectares throughout the following 15 years.

Funcagua focuses its actions on 12 of the 17 municipalities of the Department of Guatemala, where 94% of the population is concentrated.

Improving the potential recharge of the aquifers in the metropolitan region.

Reducing runoff and landslides caused by extreme hydro-meteorological events.

Creating awareness and educating diverse water users.

Improving the financial resource management capacity for water conservation.

Monitoring the situation linked to integrated water management in the metropolitan region.

The following are some of the objectives of Funcagua:

Funcaguathe Guatemalan Water Fund

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The Regional Water Fund in Chira-Piura (FORSAN for its initials in Spanish) was created in 2015 to implement measures and projects for the ecosystem (moorlands and cloud forests) conservation, as well as to develop a water culture that raises environmental awareness in the population regarding the use of water resources; promoting the participation of all water users to contribute to the integrated management of water resources in the Chira-Piura Basin, implementing the Water Resource Management Plan as a basis and having the Technical Department of the Water Resources Committee of the Chira-Piura Basin as its operational unit. The aim of FORASAN is to attract, manage and channel investments to ensure the quality and quantity of the Chira-Piura Basin’s water resources.

cbc Peru was one of the first donor entities of FORASAN since 2017, with the purpose of contributing, through FORASAN, to the execution of protection projects in Peru’s aquifer recharge areas.

Continuing with its objective to find solutions to water shortages in Peru and contribute to ensuring the conservation, recovery and maintenance of the moorlands, forests and lagoons, in 2020 cbc joins the ecosystem service remuneration program in a project under the South-South cooperation framework, in which the Asociación para la Investigación y Desarrollo Integral (AIDER), Peru, and Costa Rica’s National Forestry Financing Fund (FONAFIFO for its initials in Spanish) are developing joint actions focusing on seed technology transfer, water harvesting and water resource management experiences in both countries. These actions intend to improve the adaptive capacity to climate change of rural communities of Peru and Costa Rica.

FORASANthe Regional Water Fundin the Chira-Piura Basin

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The Private Institute for Climate Change Research (ICC for its initials in Spanish) is a private institute focusing on the research and development of community climate change mitigation and adaptation, productive process and infrastructure projects. The Institute develops and promotes actions facilitating the mitigation of and adaptation to climate change based on scientific technical guidelines.

cbc remains a partner of ICC for the integrated management of basins, seeking to implement actions to maintain the integrity of natural resources in the basins. These actions are carried out through integrated water management, soil protection, and forest protection and management.

Cooperation Agreement with thePrivate Institute for ClimateChange Research

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1 7 7

Aiming to turn sustainable water management into a national cause, Stockholm Junior Water Prize –the largest social enterprise in Europe dedicated to the development of sustainable projects and businesses in the water and sanitation sector— in cooperation with cbc, launched the largest responsible water resource management contest for youth between 15 and 20.

The contest was designed in different stages: a) Ideation, which includes the justification of the project; b) Planning, the stage in which the methods and techniques to be used are presented, and c) Experimentation.

The winning project will represent the country in the international contest to be held in Stockholm in late August 2020.

cbc Participates with SR3 Invent in the 2nd Editionof the Sustainable Water Management Contest:“Responsible Water Conservation andManagement Projects”



12.5 By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.

Responsible Consumptionand production

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cbc has a cooperation agreement with Amigos del Lago to promote the culture of recycling and proper disposal of solid waste in the Lake Atitlán basin area, in the Department of Sololá, Guatemala.

Lake Atitlán, located in southwestern Guatemala, is categorized as one of the most important bodies of water in the region. A driving force of development and a generator of tourism, the lake is a source of subsistence for over 300 thousand people living at its basin, who also depend on its waters for their intake and hygiene.

The goal of Atitlán Recicla is to strengthen the culture of recycling among the population, providing the necessary infrastructure and logistics for the appropriate management of solid waste, which would directly reduce the contamination of the lake’s basin. It is also important to point out that recycling could potentially become an alternative source of income for the communities, through the sale of the collected materials.

The project seeks to promote the participation of women and youth in the community, which is why groups of female leaders –directly in charge of operating the collection and transfer centers– were formed.

In 2019, the project operated through inter-municipal collection and transfer centers where solid recyclable waste (aluminum, PET and glass, among others) is collected. The Women’s Collection Centers include: Santa Clara la Laguna, Santiago Atitlán, San Lucas Tolimán, San Juan la Laguna, Santa Catarina Palopó , San Antonio Palopó , San Andrés Semetabaj, and Santa Cruz la Laguna. The Municipal Collection Centers include: San Marcos La Laguna, San Pedro La Laguna, Santa Lucía Utatlán, and Santa María Visitación.

Each municipality has its own daily or weekly collection schedule/program and is expected to collect over 58 tons of recyclable waste per month.

The Recycling Program inthe Lake Atitlán Basin

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In 2019 Atitlán Recicla performed eight rounds of recyclable material sales.

In the Lake Atitlán basin, 3,829.63 quintals of recyclables were collected, for a total amount of 383 tons of recyclable waste, including: glass (50%), PET (30%), cardboard and paper (15%), and others (5%). This project contributed to environmental conservation and to caring for Lake Atitlán by preventing recyclable inorganic waste –which takes thousands of years to decompose– from being dumped into the lake.

Besides contributing to increase the income of women, the technical support from the municipalities, correct disposal of solid waste, and environmental education, among others, one of the most significant results of the Project has been empowering women on environmental matters, breaking down the stereotypes of what used to be considered a man’s job, while also building greater environmental awareness in their communities and greater self-esteem through dignified work.


Since 2008, cbc has supported over 120 micro-entrepreneurs that are part of a recycling network, with the purpose of reducing the environmental footprint. Through this program, 300 communities have been trained through associations and cooperatives, prompting the establishment of micro-enterprises dedicated to the recovery and sale of recyclable materials, especially PET bottles. Support is provided to the communities through technical training and tools, such as scales, as well as through the means to transport the bottles.

The “Reciclaje Comunitario“ program has become a valuable opportunity to generate income for those who are part of this network.

Community-ledRecycling in Guatemala

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Recycling Agreements

cbc and the Indigenous Mayorship of the Municipality of Santa Cruz del Quiché (Alcaldía Indígena de Santa Cruz del Quiché) maintain their commitment through a Letter of Understanding, with the objective of developing collaborative efforts between both institutions in order to jointly coordinate the work required to implement a recycling program that contributes to the environment.

This partnership allows us to make a positive contribution to protect Mother Earth, caring for the forests and also separating the generated waste for its recycling and appropriate final disposal.

The Municipality seeks to protect the natural assets that are a life source and are in harmony with Mother Earth.

The Indigenous Mayorship of the Municipalityof Santa Cruz del Quiché cbc and Fundación Valle de Panchoy have a strategic partnership that supports “Antigua

Limpia,” a recycling plan for a clean Antigua Guatemala. This plan implements actions enabling the collection and recovery of recyclable and/or reusable solid waste, in order to procure their better and greater economic, environmental and social use. In 2019, “Antigua Limpia” recycled 12,095 pounds of glass, 3,791 pounds of PET and 640 pounds of aluminum.

Fundación Vallede Panchoy

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cbc signed an Agreement with Nicaragua’s Recycler Association (Asociación de Recicladores de Nicaragua) in 2015 to promote the culture of recycling. This enabled the implementation of joint actions to create awareness regarding the benefits of recycling, such as separating solid waste, in Nicaragua. This agreement will continue in 2019.

Cooperation Agreementwith Asociación deRecicladores de Nicaragua

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Empoderamiento de Madres Tejedoras de la provincial de Ayacucho y reciclaje, a program jointly executed by cbc and Khana Peru has transformed circles of poverty into circles of prosperity, through circular economy, by generating economic opportunities for vulnerable women through PET bottle recycling and strengthening their role in the community, not only as heads of households but also as income generators.

Pepsi and 7UP RECO bottles are transformed into 100% recycled threads when they are returned by consumers to the points of sale. Through reverse logistics, cbc picks up and transfers the bottles to its Huachipa factory, where they are separated and selected. Bottles are transformed into 100% recycled plastic threads that are then sent to Ayacucho.

In Ayacucho, the threads are received by women in vulnerable conditions with a talent for weaving and embroidery acquired through the transfer of knowledge from generation to generation. These women are trained in financial skills by Khana, a sustainable fashion and accessories company, which also guarantees the full (100%) purchase of that produced by these entrepreneurial women, at a fair price, to subsequently sell these products in spaces promoting sustainable fashion and fair trade. Thus, each time someone purchases and brings back a returnable Pepsi or 7Up bottle, the purchaser knows that it will become a tool for entrepreneurial women.

In 2019, through this Program, 15 women artisans were empowered and received training that involved the three important pillars that contribute to make the world a better place: we work for women, recycling our bottles and generating economic opportunities.

Bottles that Empower Program

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Bodega Modelo is a program aimed at cbc’s traditional distribution channel partners to support them in their personal, family and business growth through quality education that enables them to identify themselves as social and business leaders in their community.

One hundred and three (103) small neighborhood grocery store owners participated in the program; 583 hours of personal support were invested at their stores, in addition to 13 group training workshops –two on Empowering Women— with 38 women participants, and the installation of recycling bins at 68 of these grocery stores.

The program was developed with Fundes Latinoamérica and reached a total of thirty districts in the department of Lima-Peru; 68% of the 103 participants were women between the ages of 31 and 40.

The training and continuous support addressed the 4 pillars of sales, how to use records to improve control over your business, life plan, business model, community partner leadership, recycling, technology, and the Law for small neighborhood grocery store owners (Ley del bodeguero).

In the framework of the cbc Bodega Modelo program, the cbc Women’s Empowerment Component was integrated as part of the work strategy with the female grocery shopkeepers participating in the program. This led to its implementation in September 2015, essentially seeking to provide a space for education and valuable opportunities for women leaders and co-leaders, steering them to discover their feminine power from the diverse roles they undertake as businesswomen, citizens and community leaders. With this objective, cbc has also been able to (1) collect valuable information regarding the expectations, requirements and needs of the women participating in the program, (ii) provide a space for these women participants to reflect on their feminine empowerment , (iii) grant seed money to the excelling participants so as to contribute to the development of their business and their service as community leaders.

BodegaModelo

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Recycling Programin Jamaica

1 8 5


cbc Jamaica participates in the Recycling Partners of Jamaica initiative, made up by the Government of Jamaica and different industry businesses. The objective of the initiative is to recover and recycle PET bottles so as to produce a positive impact on the development of new employment opportunities.

The first outcome report was submitted in 2015. Such report highlighted the development of collection centers and the beginning of the recovery process. The program is still operating.

2018 marked the start of an analysis process aimed at developing a circular economy project in Jamaica.

This important initiative, driven by the joint efforts of the public and private sectors, was followed up in 2019.

The grassroots recycler empowerment program (Programa de Empoderamiento para Recicladoras de Base) jointly executed by Tesalia cbc and Redes con Rostro creates shared value through the transfer of knowledge, experiences and resources, benefitting the communities of the provinces of Manabí and Sucumbíos.

The program promotes gender equality within the grassroots recycler associations, prompting the full and effective participation of women in their work spaces. This strengthens the associative structure of grassroots recyclers and provides tools for them to be able to multiply the benefits of their economic and productive activities.

In 2018, Tesalia cbc worked with five associations comprised by 268 grassroots recyclers, creating a direct benefit for over 8 thousand merchants who benefitted from this local government-coordinated work model. In 2019 the program was extended to other territories in the country and the National Government of Ecuador joined the program with the Toda una Vida Plan.

The Grassroots Recycler Empowerment Program

1 8 6


Tesalia Cbc and ReciVeci Executethe “Recolección diferenciadaen 500 Hogares“ Recycling Plan

1 8 7

The pilot project to execute differentiated recycling collection in 500 households in the country’s capital was designed, consistent with prior analysis of the proposed area of intervention and grassroots recycler chain network.

The first stage began with recreational games for the inhabitants of complexes with the aim of creating awareness about recycling; information was also gathered regarding household implementation alternatives.

Determining impact metrics, providing door-to-door training, and operating routes generating recovery percentage records are all activities that are currently underway.


1 8 8

The 2nd Recycling Expo (2da. Feria de Reciclaje) was held in Guayaquil as part of the World Environment Day celebrations. The aim of this environmental activity was to recover over 100,000 PET bottles, through automated recycling equipment, to raise funds for children with and without disabilities. Participation by school and college students created a space for environmental awareness and the opportunity to share experiences about cbc’s “Proyecto de Reciclaje Inclusivo Valor Compartido”.

“2da. Feria de Reciclaje en Guayaquil” Tikay, the Municipality of Guayaquiland cbc Come Together to CreateEnvironmental Awareness

A short film, with the Alku characters, will be produced to communicate the importance of plastic bottle recycling.

Alku and cbc Bet on RecyclingThrough Animation“Explorando Juntos”


External Assurance Statement17GRI 102-48, 102–49, 102-50, 102–51, 102–52, 102–54, 102–56


This Communication on Progress –CoP– is prepared in accordance with the Global Reporting Initiative –GRI– (Core Option) Standards. This edition provides annual information and, in this instance, applies to the year 2019, specifically from January 1st through December 31st of that year, a significant change compared to previous reports, which reporting period was from December 1st to November 30th of the following year. Furthermore, it is important to point out that the last report was published in January 2019.

This issue was externally assured under the AA1000 Standard. The object of the assurance was to ensure the advanced-level fulfillment of the UN Global Compact and in accordance with the Global Reporting Initiative –GRI– (Core Option) Stadards. Attached is a Letter from the External Auditor, who is in no way related to cbc. As an overview, we selected a sample of top-tierManagers and Directors to perform the corresponding interviews, and visited three major cbc operation facilities in Guatemala, El Salvador and Peru.

Contact with our stakeholder groups

Company Name: cbc (The Central America Bottling Corporation) Contact: [email protected]

Our website: www.cbc.co

Area: Corporate Affairs

1 9 0


Assurance Standards and Processes

Assurance was based on the AccountAbility AA1000 principle-based Standards, in addition to the Global Reporting Initiative –GRI– Standards and the advanced-level principles and criteria of the UN Global Compact Communication on Progress.

A type-2 assessment was performed, at the overall level, verifying the disclosed information, the systems and procedures maintained by the organization in order to conform with the principles, and the performance information showing such conformance.

ExternalAssuranceLetter

Lima, March 30, 2020

Personaz S.A.C., through its Director, Milagros Zamudio, at the request of cbc, has performed the independent assurance of its sustainability report in compliance with the UN Global Compact advanced level Communication on Progress, and in fulfillment of the Global Reporting Initiative –GRI– (Core Option) Standards.

Scope

The scope of the assurance consisted in the thorough review of cbc’s 2019 Sustainability Report, which was prepared under the sole responsibility of cbc. The work we performed consisted in issuing a responsible opinion regarding the reliability of the information contained in such report, through the following:

Obtaining appropriate and sufficient evidence to fulfill the objective.

The quality of the disclosed information on sustainability performance in fulfillment of the 10 UN Global Compact Principles and 21 advanced-level criteria as well as the 10 GRI Reporting Principles (Core Option)

The reliability of the specific information referring to sustainability performance.

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1 9 1


Former Vice Chair of the Global Reporting Initiative (GRI) Stakeholder Council. SA8000 Certification Standard Auditor and member of the ISO 26000 Technical Committee at the Instituto Nacional de Calidad - Inacal. Director of Personaz SAC – Sustainability Consultants. Guest panelist in national and international events, as well as a professor for Master’s degree program and columnist.She was the founder and chairman of the Social Responsibility Corporate Committee of Fonafe, Director of WomenCEO Perú y Country Manager of BSD Consulting. She has served as panelist for the BID beyondBanking, UPC Protagonistas del Cambio, Corresponsables magazine, and Kunan awards. She has over 20 years of experience holding executive positions in companies such as Telefónica and Electroperú. She obtained her Masters degree in Communication from Michigan State University and completed studies at Harvard University. She prepares and audits sustainability reports for renowned national and Latin American companies.

Milagros ZamudioExternal Assurer

Conclusions

After carrying out the in-depth review of the contents of the report, verifying the evidence and performing the interviews and visits, we conclude that this sustainability report has been prepared both in compliance with the Global Reporting Initiative –GRI– (Core Option) Standards and with the advanced-level UN Global Compact Communication on Progress (CoP) requirements.

Assurance Strategy and Data Collection Methods:

Verification was mainly performed at the cbc plants and offices in Peru, Guatemala and El Salvador, through the following activities:

Content analysis of the 2019 sustainability report, to ensure its compliance.

Evidentiary verification of documents requested from different corporate areas.

Testimonials obtained through interviews with cbc Directors and Managers in Guatemala, Peru and El Salvador.

Conversations and interviews held with different company stakeholders during each of the visits that were made.

Tour of the Beliv plant in El Salvador.

Group meeting with those in charge of the different areas of the Beliv plant in El Salvador.

Verification of the process that was executed in the Botellas que Empoderan program.

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Place the GRI Standard and the UN Global Compact principle and criterion references (codes) specifically where the respective content is found so that the reader can easily identify the information.

After 3 years of advanced-level reporting and in accordance with the GRI Standards, we recommend that a new materiality analysis be performed with the global developments at the start of 2020 in mind.

Complement the general GRI 102-7 standard with regards to the size of the company, in economic terms.

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Recommendations

1 9 2

GRI Content Index18GRI 102-55


GRI Content Index

G R I C O N T E N T I N D E X

102-1 Name of the organization 5, 6, 7, 189, 191, 192 ---

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8, 9, 10, 11, 12, 13, 14, 15, 16, 17

8, 9, 10, 11, 12

5, 6, 7, 8, 9, 10, 11, 12,

8, 9, 10, 11, 12, 13, 14,15, 16, 17, 55,56 y 57

8, 9, 10, 11, 12

18, 19, 20, 21, 22, 23, 24

8, 9, 10, 11, 12, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 101, 102, 103, 104, 105, 106,

107, 108

13,14,15,16,17, 153, 154, 155, 156, 157, 158, 159, 160, 161, 162, 163, 164, 165, 166, 167, 168, 169, 170, 171, 172, 173, 174, 175, 176, 177, 178, 179, 180, 181, 182, 183, 184, 185, 186, 187, 188

153, 154, 155, 156, 157, 158, 159, 160, 161, 162, 163, 164, 165, 166, 167, 168, 169, 170, 171, 172, 173, 174, 175, 176, 177, 178, 179, 180, 181, 182, 183, 184, 185, 186, 187, 188

73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99,

100, 101, 102, 103, 104, 105, 106, 107, 108

64, 65, 66, 67, 68, 69, 70, 71, 72

42, 43, 44, 45, 46

5,6,7

8,9,10,11, 12

18,19,20,21,22,23,24,25,26,27

25,26,27

102-2 Activities, brands, products and services

102-3 Location of headquarters

102-4 Location of operations

102-5 Ownership and legal form

102-6 Markets served

102-7 Scale of the organization

102-8 Information on employees and other workers

102-9 Supply chain

102-10 Significant changes to the organization and its supply chain

102-11 Precautionary Principle or approach

102-12 External initiatives

102-13 Membership of associations

102-14 Statement from senior decision-maker

102-16 Values, principles, standards, and norms of behavior

102-18 Governance structure

102-20 Executive-level responsibility for economic, environmental and social topics

Estándar GRI

GRI 102:GeneralDisclosures

GRI 101: Fundamentos 2016

Contenidos Generales

OmisiónNúmero de Página(s)Contenido

1 9 4

GRI Standard

GRI 101: Foundation 2016

General Disclosures

OmissionPage Number(s)Contents

General Disclosures

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102-41 Collective bargaining agreements

102-40 List of stakeholder groups

102-23 Chair of the highest governance body

102-42 Identifying and selecting stakeholders

102-43 Approach to stakeholder engagement

102-44 Key topics and concerns raised

102-45 Entities included in the consolidated financial statements

102-46 Defining report content and topic boundaries

102-47 List of material topics

102-48 Restatements of information

102-49 Changes in reporting

102-50 Reporting period

102-51 Date of the most recent report

102-52 Reporting cycle

102-53 Contact point for questions regarding the report

102-54 Claims of reporting in accordance with the GRI Standards

102-55 GRI content index

102-56 External assurance

GRI 102:GeneralDisclosures2016

Contenidos Generales

102-25 Conflicts of interest

102-36 Process for determining remuneration

50, 51, 52, 53, 54

73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 101, 102, 103, 104, 105, 106, 107, 108

50, 51, 52, 53, 54

50, 51, 52, 53, 54

50, 51, 52, 53, 54

18,19,20,21,22,23,24

50, 51, 52, 53, 54,189, 190, 191, 192

50, 51, 52, 53, 54

50, 51, 52, 53, 54

50, 51, 52, 53, 54

50, 51, 52, 53, 54

50, 51, 52, 53, 54

50, 51, 52, 53, 54

189, 190, 191, 192

189, 190, 191, 192

189,190,191,192

193, 194, 195, 196, 197,198, 199, 200, 201, 202

GRI Standard


Omission Page Number(s)Content

1 9 5

28,29,30,31,32, 33,34, 35,36,37,38,39,40,41


GRI Standard


General Disclosures


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103-1 Explanation of the material topic and its boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

203-1 Infrastructure investments and services supported

203-2 Significant indirect economic impacts




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

GRI 103:ManagementApproach 2016

GRI 203:Indirect EconomicImpacts 2016


GRI 205:Anti-corruption2016

Specific Disclosures

Indirect Economic Impacts

Anti-corruption

8, 9, 10, 11, 12, 153, 154, 155, 156, 157, 158, 159, 160, 161, 162, 163, 164, 165, 166, 167, 168, 169, 170, 171, 172, 173, 174, 175, 176, 177, 178, 179,

180, 181, 182, 183, 184, 185, 186, 187, 188

8, 9, 10, 11, 12, 153, 154, 155, 156, 157, 158, 159, 160, 161, 162, 163, 164, 165, 166, 167, 168, 169, 170, 171, 172, 173, 174, 175, 176, 177, 178, 179,

180, 181, 182, 183, 184, 185, 186, 187, 188

8, 9, 10, 11, 12, 153, 154, 155, 156, 157, 158, 159, 160, 161, 162, 163, 164, 165, 166, 167, 168, 169, 170, 171, 172, 173, 174, 175, 176, 177, 178, 179,

180, 181, 182, 183, 184, 185, 186, 187, 188

8, 9, 10, 11, 12, 153, 154, 155, 156, 157, 158, 159, 160, 161, 162, 163, 164, 165, 166, 167, 168, 169, 170, 171, 172, 173, 174, 175, 176, 177, 178, 179,

180, 181, 182, 183, 184, 185, 186, 187, 188

28,29,30,31,32, 33,34, 35,36,37,38,39,40,41

28,29,30,31,32, 33,34, 35,36,37,38,39,40,41

28,29,30,31,32, 33,34, 35,36,37,38,39,40,41

28,29,30,31,32, 33,34, 35,36,37,38,39,40,41

28,29,30,31,32, 33,34, 35,36,37,38,39,40,41

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GRI Standard


General Disclosures


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301-1 Materials used by weight or volume

301-2 Recycled input materials used

301-3 Reclaimed products and their packaging materials




302-1 Energy consumption within the organization

302-4 Reduction of the energy consumption

302-5 Reductions in energy requirements of products and services

302-3 Energy intensity

302-2 Energy consumption outside the organization


GRI 301:Materials


GRI 302:Energy 2016

Materials

Energy

127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,

127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,

127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,

127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,

127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,

127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,

127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,

127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,

127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,

127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,

127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,

127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,

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1 9 8

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303-5 Water consumption

303-2 Management of water discharge-related impacts

305-3 Other indirect (Scope 3) GHG emissions

305-5 Reduction of GHG emissions


GRI 303:Water andEffluents2018

GRI 305:Emissions 2016





Emissions

127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,

127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,

127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,

127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,

127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,

127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,

127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,

127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,

127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,

127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,

GRI Standard


General Disclosures


Water and Effluents


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103-1 Explanation of material topic and its boundaries








GRI 403:OccupationalHealth andSafety 2018


GRI 404: Trainingand Education 2016

403-1 Occupational health and safety management system

403-2 Hazard identification, risk assessment, and incident investigation

403-4 Worker participation, consultation, and communication on occupational health and safety

403-5 Worker training on occupational health and safety

403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships




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

Employment

Occupational Health and Safety

Training and Education

73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 101, 102, 103, 104, 105, 106, 107, 10873, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 101, 102, 103, 104, 105, 106, 107, 10873, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 101, 102, 103, 104, 105, 106, 107, 108

109, 110, 111, 112, 113, 114, 115, 116, 117, 118, 119, 120, 121, 122, 123, 124, 125, 126

109, 110, 111, 112, 113, 114, 115, 116, 117, 118, 119, 120, 121, 122, 123, 124, 125, 126

109, 110, 111, 112, 113, 114, 115, 116, 117, 118, 119, 120, 121, 122, 123, 124, 125, 126

109, 110, 111, 112, 113, 114, 115, 116, 117, 118, 119, 120, 121, 122, 123, 124, 125, 126

109, 110, 111, 112, 113, 114, 115, 116, 117, 118, 119, 120, 121, 122, 123, 124, 125, 126

109, 110, 111, 112, 113, 114, 115, 116, 117, 118, 119, 120, 121, 122, 123, 124, 125, 126

109, 110, 111, 112, 113, 114, 115, 116, 117, 118, 119, 120, 121, 122, 123, 124, 125, 126

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GRI Standard


General Disclosures


73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99,

100, 101, 102, 103, 104, 105, 106, 107, 108

73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99,

100, 101, 102, 103, 104, 105, 106, 107, 10873, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86,

87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 101, 102, 103, 104, 105, 106, 107, 108

73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99,

100, 101, 102, 103, 104, 105, 106, 107, 108

73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99,

100, 101, 102, 103, 104, 105, 106, 107, 10873, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86,

87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 101, 102, 103, 104, 105, 106, 107, 108


GRI Standard


General Disclosures


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103-2The management approach and its components


405-1 Diversity of governance bodies and employees






GRI 408: ChildLabor 2016


GRI 409: Forcedor CompulsoryLabor 2016

GRI 405: Diversityand EqualOpportunity 2016

408-1 Operations and suppliers at significant risk for incidents of child labor




409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor

Diversity and Equal Opportunity

Child Labor

Forced or Compulsory Labor

2 0 0

73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99,

100, 101, 102, 103, 104, 105, 106, 107, 108

73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99,

100, 101, 102, 103, 104, 105, 106, 107, 108

73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99,

100, 101, 102, 103, 104, 105, 106, 107, 108

73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99,

100, 101, 102, 103, 104, 105, 106, 107, 108

28,29,30,31,32, 33,34, 35,36,37,38,39,40,41

28,29,30,31,32, 33,34, 35,36,37,38,39,40,41

28,29,30,31,32, 33,34, 35,36,37,38,39,40,41

28,29,30,31,32, 33,34, 35,36,37,38,39,40,41

28,29,30,31,32, 33,34, 35,36,37,38,39,40,41

28,29,30,31,32, 33,34, 35,36,37,38,39,40,41

28,29,30,31,32, 33,34, 35,36,37,38,39,40,41

28,29,30,31,32, 33,34, 35,36,37,38,39,40,41


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GRI 413: LocalCommunities 2016


GRI 414: SupplierSocial Assessment2016

413-1 Operations with local community engagement, impact assessments, and development programs




414-1 New suppliers that were screened using social criteria

Human Rights Assessment

Local Communities

Supplier Social Assessment

2 0 1

GRI Standard


General Disclosures


153, 154, 155, 156, 157, 158, 159, 160, 161, 162, 163, 164, 165, 166, 167, 168, 169, 170, 171, 172, 173, 174, 175, 176, 177, 178, 179, 180, 181, 182,

183, 184, 185, 186, 187, 188

153, 154, 155, 156, 157, 158, 159, 160, 161, 162, 163, 164, 165, 166, 167, 168, 169, 170, 171, 172, 173, 174, 175, 176, 177, 178, 179, 180, 181, 182,

183, 184, 185, 186, 187, 188

153, 154, 155, 156, 157, 158, 159, 160, 161, 162, 163, 164, 165, 166, 167, 168, 169, 170, 171, 172, 173, 174, 175, 176, 177, 178, 179, 180, 181, 182,

183, 184, 185, 186, 187, 188

153, 154, 155, 156, 157, 158, 159, 160, 161, 162, 163, 164, 165, 166, 167, 168, 169, 170, 171, 172, 173, 174, 175, 176, 177, 178, 179, 180, 181, 182,

183, 184, 185, 186, 187, 188

64, 65, 66, 67, 68, 69, 70, 71, 72

64, 65, 66, 67, 68, 69, 70, 71, 72

64, 65, 66, 67, 68, 69, 70, 71, 72

64, 65, 66, 67, 68, 69, 70, 71, 72

28,29,30,31,32, 33,34, 35,36,37,38,39,40,41


416-1 Assessment of the health and safety impacts of product and service categories

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GRI 417: Marketingand Labeling 2016

GRI 416: CustomerHealth andSafety 2016

417-1 Requirements for product and service information and labeling

Customer Health and Safety

Marketing and Labeling

58, 59, 60, 61, 62, 63

58, 59, 60, 61, 62, 63

58, 59, 60, 61, 62, 63

58, 59, 60, 61, 62, 63

58, 59, 60, 61, 62, 63

58, 59, 60, 61, 62, 63

58, 59, 60, 61, 62, 63

58, 59, 60, 61, 62, 63

2 0 2

GRI Standard


General Disclosures



UN Global CompactPrinciples Index19


Businesses should support and respect the protection of internationally proclaimed human rights.8, 9, 10, 11, 12 , 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41

28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 64, 65, 66, 67, 68, 69, 70, 71, 72

28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86,

87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 101, 102, 103, 104, 105, 106, 107, 108, 153, 154, 155, 156, 157, 158, 159, 160, 161, 162, 163, 164, 165, 166, 167, 168, 169, 170, 171, 172, 173, 174, 175, 176, 177, 178, 179, 180, 181, 182, 183, 184, 185, 186, 187, 188

64, 65, 66, 67, 68, 69, 70, 71, 72, 109, 110, 111, 112, 113, 114, 115, 116, 117, 118, 119,

120, 121, 122, 123, 124, 125, 126Businesses should make sure that they are not complicit in human rights abuses.

Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.

Businesses should support the elimination of all forms of forced and compulsory labor.

Businesses should support the effective abolition of child labor.

Businesses should support the elimination of discrimination in respect of employment and occupation.

Businesses should support a precautionary approach to environmental challenges.

Businesses should undertake initiatives to promote greater environmental responsibility.

Businesses should encourage the development and diffusion of environmentally friendly technologies.

Businesses should work against corruption in all its forms, including extortion and bribery.

Human Rights

Labor

Environment

Anti-Corruption

Human Rights Assessment

Description

1

2

3

4

5

6

7

8

9

10

PrincipleGroup

UN Global Compact Principles Index

2 0 4

Page Number(s)

U N G L O B A L C O M P A C T P R I N C I P L E S I N D E X

73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99,

100, 101, 102, 103, 104, 105, 106, 107, 108

127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,

127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144,

145, 146,147, 148, 149, 150, 151, 152,

127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144, 145, 146,147, 148, 149, 150, 151, 152, 153, 154, 155, 156, 157, 158, 159, 160, 161, 162, 163, 164, 165, 166, 167, 168, 169, 170, 171, 172, 173, 174, 175, 176, 177, 178, 179, 180, 181, 182, 183,

184, 185, 186, 187, 188

28,29,30,31,32, 33,34, 35,36,37,38,39,40,41

28,29,30,31,32, 33,34, 35,36,37,38,39,40,41

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