SUSTAINABILITY ACTIVITIES

The Carlos Slim Foundation operates 96 sustainable programs and projects in 13 different areas, among them education, health, sports, the environment, and culture, reaching millions of beneficiaries in Mexico and other Latin American countries. www.fundacioncarlosslim.org/

In addition to the Foundation activities, the Grupo Carso companies invested in education, health, infrastructure and community development by means of the following initiatives:

• • Corporate Volunteers in Condumex work centers


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


• • The Carso Training Centers for the general public


• • The Carso Research and Development Center (CIDEC)


• • Academic involvement in technological innovation projects by Condumex and Carso Infraestructura y Construcción


• • Program for the redemption of real estate assets in Sanborns


• • Program for the hiring of disabled persons in Sanborns and Sears, through the Mexican Confederation of Organizations for Assistance to Disabled Persons (CONFE), the Multiple Assistance Center, (CAM), the YMCA, and DIF


• • Free courses in the Carlos Slim Foundation’s “Train Yourself for a Job” platform, accessible to the general public, and with access to the jobs market, which includes recruiting procedures for Grupo Carso companies


• • Organ Donation Campaign on a national level, with all the collaborators and their families, through videos, talks and brochures, reaching 5,570 Sears collaborators in 46 locations and with 77 volunteers

ENVIRONMENTAL PERFORMANCE

Grupo Carso

Grupo Carso has a Corporate Policy of Protection of the Environment, revised and updated in 2018 for its application in the Group’s subsidiaries and in those companies that operate under its name in the productive chain. Carso Infraestructura y Construcción, S.A de C.V. has expert personnel in all its projects ensuring compliance with the mitigation measures established by the environmental authorities. Energy-saving technologies for the use and care of resources are always used, and the implementation of the Management of Residues Plan is being continued. Additionally, environmental awareness campaigns are continuously carried out with the personnel in the various sectors.

Grupo Sanborns

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

Condumex and Carso Infraestructura

RESCUE OF FLORA AND FAUNA

In 2019, 5,350 individual specimens of flora and 17 of fauna were rescued and relocated. Of these, 14% and 35%, respectively, are under some form or other of protection, according to the NOM-059-SEMARNAT-2010 Standard. In the Las Varas-Vallarta Highway Project, 31,626 individual specimens of flora and 63 individual specimens of fauna, of which 41% are classified as under protective status – among them the rattlesnake – were rescued and relocated.

REFORESTATION CAMPAIGNS

In coordination with the Secretaryship of Environmental Management and Ecology of San Luis Potosí (SRGAM), we participated in the 2019 reforestation campaign of Parque Tangamanga II, in which 296 trees of various species were planted. Also realized was the Annual Reforestation Campaign in the “Sierra de Guadalupe” Park in the municipality of Coacalco, State of Mexico, with the support and coordination of the Eastern Department.

FOOTPRINT OF CONTAMINATING RESIDUES

As a part of the projects that were executed in 2019, the activities involving the separation, reutilization and recycling of dangerous residues requiring special handling were continued, thereby reducing the quantity of residues taken to the sanitary landfills and consequently limiting the extent of these basic sanitary sites. These actions are in compliance with the General Law for the Prevention and Integral Management of Residues (LGPGIR) and avoid the contamination of water supplies.

ISO Certifications

During 2019, the Cables Sector and Autopartes companies of the Condumex Group made it possible for 9 plants to obtain the third party certification in the ISO 14001:2015 Standard, and for 9 plants to obtain the corporate certification for its environmental management system, while 6 plants continue in the certification process. In the infrastructure and pipelines sectors, the environmental certifications of the International ISO 14001:2015 Standard continue in effect until August 02 and December 17 of 2021, respectively.

Grupo Condumex Plants

Standard of Updating	Area	Certified in 2019	In Process or updating
ISO 9001, e IATF16949	Quality Management System	28	2
TL 9000	Management systems for telecommunications	1	1
ISO IEC 17025	Management systems for laboratories and calibration	4	1
ISO14001*	Environmental management system	19	6
ISO 50001	Energy management system	3	1
ISO 27001	Data security management system	2	0
OSHAS 18001	Health and occupational safety management system	1	0
Total		58	11

^{*In the total number of plants certified for Condumex, the CDIC was also considered, since, although it is not a plant, it is a workplace that also has a 14001:2015 certification.}

Carso Infraestructura y Construcción Sectors

Standard	Area	Certified in 2019	In Process or updating
ISO 9001	Quality management system	4	0
ISO14001	Environmental management systems	3	0
OSHAS 18001	Health and occupational safety management system	3	0
ASME S, U, U2	Design, fabrication, quality and safety for equipment subject to pressure	1	0
Certification “R” for the National Board of Boiler and Pressure Vessel Inspectors.	Safety for equipment subject to pressure	1	0
Total		12	0

Awareness campaigns for personnel and their families

In 2019, two permanent awareness campaigns were established, named “PILOTÓN” and “Recycling Against Cancer.” 1,900 batteries of different types were collected, to thereby avoid the contamination of soil and water, along with 1.36 tons of plastic bottle caps, which were delivered to the “Alianza Anticancer, A.B.P” association. Voluntary support was also given to the organizations “Mexican Association for Assistance to Children with Cancer, I.A.P.” (AMANC) and to the foundation “Fundación Cómplices al Rescate A.C.,” by delivering to them 888.6 kilograms of plastic caps, PET, and aluminum.

The drawing contest “Air without contamination,” for children aged 5 to 10 years with a relationship of any kind with our employees was carried out, in observance of the International Day of the Environment, which was celebrated on June 5 of 2019.

Work, Health and Safety Performance

Grupo Carso is a source of permanent and part-time employment for more than 77 thousand people in Mexico, Latin America and Europe. In 2019, employment increased by 5.8% compared to the previous year. The Group’s employees enjoy salaries and wages that are in accordance with the laws, the market, their performance and their level of responsibility within the area in which they work.

Jobs created in 2019

Following below are the Beneficial Programs realized in the three Grupo Carso divisions:

• • Digital scholarships and scholarships for the children and direct family members of employees,


• • Home Office program. Flexible hours for mothers and fathers; economic assistance for funeral expenses and paid leaves of absence,


• • Self-managed Workplace Health and Safety Program in Grupo Condumex,


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


• • Disease prevention campaigns, with the collaboration of the Mexican Social Security Institute (IMSS) and the Secretaryship of Health (SSA),


• • Civil Protection Programs with training in volunteer brigades,


• • Personal betterment programs through ASUME, CRESE and the Social Welfare Program,


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


• • Training programs in sales and management abilities,


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

Training Centers

For courses, talks and workshops we have the Carso Training Center and the Sears Training Center. There are also 97 class rooms in the operating units, as well as 47 Sanborns classrooms in the corporate offices, in the Viaduct Plant and in foreign locations such as Panama and El Salvador.

Technical, operational, professional development, safety and health courses

During 2019, 62,549 courses were held in Carso Infraestructura, Condumex, Sears, Sanborns, Promotora Musical, Dax and Saks Fifth Avenue, with 251,154 graduates. The training programs in the commercial areas focused on subjects such as communication, customer service, teamwork, and quality of service, from Director levels to operational levels. In CICSA, Condumex and the Central (Corporate) Sector, the courses were on technical training and entertainment, abilities, safety, and environmental matters for both permanent as well as temporary employees. Additionally, in Sanborns and Sears, an important Civil Protection program was carried out, which was attended by 4,663 employees.

Flexible Hours and Professional Development Programs

During 2019 in Carso Infraestructura and Condumex, 605 employees received the benefits of flexible hours and 98 benefitted from the Home Office program, an increase of 4.1% and 19.5%, respectively, over the previous year. No engineers were contracted under the Professionals in development Program.

Programs	Beneficiary Employees 2018	Beneficiary Employees 2019	Variation %
Employees with flexible hours 4 hourly options	584	605	4.1%
Employees with the Home Office option	82	98	19.5%

Scholarships

699 Carso Digital Scholarships were awarded to children of the Group’s employees and 714 Telmex Scholarships were awarded to employees or their children in 2019.

	2019
Digital scholarships – 2017-2018 call for eligible children of employees	699
Telmex scholarships – 2018 call for eligible employees and their direct family members	714

The ASUME program (Association for the Betterment of México) had a scope of 280 groups, 3,477 collaborators and 239 facilitator graduates from Grupo Carso companies.

ASUME	GROUPS	PARTICIPANTS	FACILITATORS
Grupo Sanborns	280	3,279	239
CICSA and CONDUMEX	15	198	20
	295	3,477	259

In the Social Welfare Program, 3 fundamental aspects were addressed: Professional Development, Health, Culture and Recreation. In 2019, 60,369 persons were the beneficiaries of the various programs, including employees of Grupo Carso and their families, 18,697 more than in the previous year.

	2017	2018	2019
Beneficiaries	34,499	41,672	60,369

The “Management of Human Quality and Social Responsibility” (CRESE) system was continued in the Company, with the certification of three new units and the recertification of 30 units in Sears (stores, credit centers, technical services and logistics), for a total of 111 certified units, an increase of 12% in respect to the previous year. In Sanborns, 21 units were incorporated in 2019 with the classification of Outstanding Company, having carried out 40 Health Campaigns, with 2,463 beneficiaries.

The use of the “Train Yourself for a Job” platform of the Carlos Slim Foundation was continued, for the basic training of operational and middle management personnel. During the year 550 Grupo Carso employees were trained in various occupations. 3,160 new Sears employees were hired and they too were trained in the said platform.

No Discrimination

In the selection and hiring of personnel, no discriminatory practices or conduct are allowed or tolerated in Grupo Carso, and the same policy is observed in benefits granted, working conditions, training and promotions, which are all based on competence and experience. Our code of ethics promotes the elimination of all discriminatory acts or actions, and the adherence to a policy of fairness and equal opportunity for all is established in the Principles of Conduct in the Work Place.

Inclusiveness in Hiring Practices

We promote the incorporation of persons without regard to age, gender, sexual preference, civil status, religion and intellectual capacity, establishing support for our position in agreements with various public and private institutions.

Permanent Inclusion Programs

Institutions with which we have worked on a continuous basis:

Improvements 2019

Activity	Benefits
Yammer (internal communication network)	MGreater scope of communication with all employees in regard to: - Vacant positions - Dissemination of social welfare activities - ASUME Program - The Carlos Slim Foundation
Updating of the Code of Ethics	Disseminate, in all the work centers of Grupo Condumex and Cicsa, the importance of the values, principles, ethical guidelines and conduct by which our Company is defined.
Use of the Office 365 platform	Prioritize remote communication with the work teams, shortening the time for transfers, reworking, etc., to thereby promote the greater efficiency and efficacy.

Anti-Corruption Practices

We have a Culture of Legality program in which courses are held for the prevention of abuse of confidence, theft and corruption. Drop boxes have also been established for the anonymous denunciation of such instances.

For more information and details regarding sustainable activities, see the sustainable activities section of the Grupo Carso S.A.B. de C.V. website at: https://grupocarso.com.mx/sustentabilidad/