Annual Report 2023

SUSTAINABILITY ACTIVITIES

CARSO COMPREHENSIVE HEALTHCARE PROGRAM

Following the COVID-19 pandemic, the Carlos Slim Foundation, has continued with its comprehensive actions – through the Carso Comprehensive Healthcare Program – to maintain its healthcare of the persons who form a part of Grupo Carso.

The Carso Comprehensive Healthcare Program is active and implements the MIDO (Medición Integrada para la Detección Oportuna) digital health strategy in 1,671 workplaces of 19 work groups of companies of the Carso Group, in order to systematically evaluate the health situation of the workers. In 2023 health checks were carried out on almost 80 thousand employees, establishing thereby that 24% of them are smokers and that 55% of them lead a sedentary life style, both of which are risk factors for the development of disease. Additionally, we now know the prevalence of obesity (29.5%), diabetes (8.8%) and high blood 

pressure (17.9%), and we also now know which workers are pre-hypertensive or pre-diabetic and need simple measures to avoid the progression towards illness. With this information the companies can address their efforts towards specific actions to improve the health of their workers.

But not only that: we also identified more than 11,900 persons who had diabetes or hypertension and didn’t know it, and they were sent to receive treatment in a timely manner; we also implemented the control of diabetes and hypertension in more than 5,600 employees to avoid complications.

In the development of this work 716 employees, specifically
trained in courses, practical workshops and live sessions
participated and received adequate training in order to

become agents of change in their workplaces. Additionally, a direct communication channel with each person was established via the utilization of the intelligent Health application that promotes self-care and self-monitoring, and that provides personalized recommendations to each person, in accordance with each person’s state of health in order to promote a healthy diet, regular exercise and to avoid nicotine addiction. More than 82,000 workers are now utilizing this application.

Finally, the program has an important component consisting in the monitoring of risks, and in the promotion of actions for the prevention of disease. During the past year, multiple campaigns were launched for the prevention of risks associated with natural events such as extreme temperatures in Summer and hurricanes, such as hurricane Otis in Acapulco. In this latter case, a response was coordinated with Telmex to mi-

tigate the effect on the health and safety of the employees after the passing of the hurricane through Acapulco and its neighboring communities. Recently we have been monitoring events in Latin America that could represent a health and safety threat in Mexico, specifically, the increase in cases of measles and dengue fever.

Salud Integral Carso
reflects our com
mitment to the
promotion of a
healthy worker’s
life in all the
Grupo Carso
companies

ENVIRONMENTAL PERFORMANCE

Sustainable Carso promotes all those actions that work towards the preservation of the environment, with the commitment of utilizing the natural resources necessary for the activities that are developed in the various economic sectors in a rational and efficient manner, and to:

  • Guarantee the compliance with the applicable Environmental Legislation, as well as with all the commitments in this regard that are voluntarily subscribed by the companies.
  • Prevent, Reduce and Mitigate the environmental impacts caused by the companies of the Group.
  • Support initiatives for the purpose of addressing climate change.
  • Implement good environmental practices for the conservation of water, energy and consumable materials, as well as the effective treatment and final disposal of residues.
  • Promote the development and dissemination of green technologies.
  • Contribute to the environmental awareness of our employees, providers and clients, in order to encourage the protection and care of our surroundings.
  • Manage, by means of an Environmental Management System, all the indicators derived from the activities of each company.
  • Formulate, develop, apply and periodically back feed our environmental objectives and programs.

GRUPO SANBORNS

To successfully mitigate the effects that are produced on the environment in the Commercial
sector, which is actually quite low, we have implemented operating procedures, established work programs, and carried out monthly monitoring of environmental indicators.

ENVIRONMENTAL ACTIVITIES BY GRUPO SANBORNS IN 2023

Usage of energy avoided
kwh 17,200.93

Use of LP gas avoided:
280,287 Lts

Use of Natural Gas
Avoided:
9,002 m3

Used cooking oil
quemado 1.03 Ton

Reutilized or treated
water 7,125.00 m3

Emissions avoided:
22,870.00 Ton CO2

Recycled batteries
523 Ton

CONCEPT UNITS. MEASURE 2021 2023 DIF. Variation.%
2023 - 2022
Water reused or treated
m3
18,407.0
7,125.0
11,997.0
-61.3%
Residues requiring special handling: used cooking oil
TON
2.9
1.0
1.7
-64.5%
Energy savings
kw - hr
10,200.9
17,200.9
-9,506.2
68.5%
Savings of LP gas
Lts
190,150.1
280,287.0
-138,957.0
47.4%
Savings of Natural Gas
m3
4,800.0
9,002.0
-2,658.0
87.5%
Dangerous residues: recycled batteries
Tons
523.0
ND
343.0
ND
Emissions avoided
Ton C02
1,980.0
22,879.0
-895.0
2008.7%

GRUPO CONDUMEX, CARSO INFRAESTRUCTURA Y
CONSTRUCCIÓN, ELEMENTIA Y FORTALEZA

In 2023, as a result of the application of the Corporate Policy of Environmental protection, 22 work centers of the Grupo Condumex companies of the cables and automotive parts sector maintained a certification in the ISO 14001 : 2015 Standard. The Infrastructure and Pipelines sectors maintained this international standard effective to August 02 and December 17 of 2024, respectively.

The Grupo Carso companies are carrying out actions in which the technological advances that offer advantages in the use and care of natural resources are used, while allowing the realization of substantial savings in water and energy.

In Carso Infraestructura y Construcción all the construction projects have experts on environmental management at hand, ensuring the compliance with the mitigation measures established in the environmental authorizations for the projects in question.

Throughout the year, the Grupo Condumex work centers recorded a total energy consumption of 144,492,017 kWh, of which the clean energy consumption was 81,304,685 kWh, avoiding the emission of 12,545 TonCO2 and additionally with a self-supply of photo-voltaic solar energy of 2,320,469 kWh, avoiding the emission of 1,146 TonCO2e. As for the consumption of water, in the 25 work centers, a total

consumption of 416,462 m3 was recorded.

Continuing with the implementation of the Residues Management Plan, which diminishes the volume of residues sent to land fills and which limits their operating capacity, during 2023 in the sectors of Elementia/ Fortaleza, Infraestructura, Pipelines and central offices, as well as in the work centers of the cables, automotive parts, CIDEC Jurica and CT, a total of 8,285,516 kg of residues requiring special handling were collected and recycled, with various environmental benefits, since the recycling 25,010 kg of paper and 1,061,806 kg of cardboard avoided the cutting of 18,772 trees and saved the 28,259,083 liters of water that would have been needed to manufacture new paper, and avoided 3,260 m3 of residues being sent to the sanitary landfill. As for dangerous residues, in 2023, in the same work centers mentioned above, 1,948,160 kilograms of dangerous residues were sent for treatment and final disposal with an environmentally adequate management, complying with the provisions established in the General Law for the Prevention and Comprehensive Management of Residues (LGPGIR).

The “Pilotón” campaign was carried out twice in 2023 in the central offices of CICSA and in the Infrastructure and Pipelines sectors, managing to collect 41 kilograms of used alkaline batteries, which were disposed of by the company E-Weast, which has the necessary authorization from the corresponding environmental Authority.

In Elementia y Fortaleza Materiales, various laws and regulations are observed that have to do with health, the environment and safety and that regulate, among other matters, the production, sale, storage, handling, use, repair, disposal and transportation of dangerous materials; the emission and discharge of dangerous materials into the soil, atmosphere or bodies of water, as well as the health and safety of our employees. Permits from governmental authorities are required for the realization of certain operations. Additionally, certifications have been voluntarily obtained from national and international organizations for some of the production plants.

Quantity of residues generated by the organization (Tons) 2023
Organic
ND
Inorganic
37,817.0
Commercial
ND
Dangerous residues
1,948.16
Residues requiring special treatment
8,285.50
Electronic residues
0.01

In Grupo Condumex, the company NACEL, Vallejo y Latincasa maintains a Clean Industry acknowledgement – which is one of the voluntary programs of the national and state environmental authorities – in order to adhere to the said voluntary program and thereby improve the efficiency of its production processes while complying with good practices and
engineering standards under national and international parameters. And the Condumex Guadalajara Plant maintains the Environmental Leadership certificate, awarded by the Ministry of the Environment and Territorial Development (SEMADET) of Jalisco, for its high standards for the protection of the natural surroundings in Jalisco. It is the only company enjoying that distinction.

In matters of reforestation during 2023, in the cables and automotive parts sectors, 230 trees of various species were planted, with the participation of approximately 208 persons. The company Latincasa maintains in its facilities a nursery with a total of 591 saplings of 12 different species, which are used in its reforestation activities in the industrial zone of San Luis Potosí and in the company itself. In June of 2023, Carso Infraestructura y Construccion launched its Annual Reforestation Campaign, in coordination with the Ministry of the Environment of the State of Mexico, through 

its General Coordination of Ecological Conservation and with the support of the Sierra de Guadalupe State Park, with the participation of 50 employees and their friends and family members, who managed to plant 50 maguey plants while promoting family togetherness. In March, as a support activity for the maintenance of the flora planted in the various reforestation activities, an Auxiliary Watering Campaign was carried out, organized by the Sierra de Guadalupe State Park Department, with the participation of 11 persons, who contributed to the survival of 190 trees in this state park.

Among the projects that were developed in the Infrastructure sector in 2023 was the Rescue and Relocation of Flora and Fauna program, which carried out the rescue of 20,283 specimens of flora and 118 of fauna, among which 5,031 specimens of flora and 30 of fauna are in some protective status or other, according to the NOM-059- SEMARNAT-2010. In the nursery, there are 10,346 individual specimens that will be used in reforestation activities in impacted zones.

For the purpose of generating an environmental awareness that encourages the effective participation of the persons who work in the Infraestructura, Pipelines, Central Offices, as well as in the work centers of the cables, automotive parts, CIDEC

Captura de pantalla_9-7-2024_11529_

Jurica and CT sectors, their participation in the “Recycle Against Cancer” campaign was encouraged, which, in addition to its support in the collection and recycling of plastic caps, has encouraged the participation of family members and friends. In 2023 a total of 1,241.6 kg of plastic caps was collected and donated to the “Alianza Anticancer, A.B.P”, association, “Banco de Tapitas” and “Ángeles en Libertad A.C.”, all of them generating an economic resource for the basic medical, psychological, nutritional and social assistance needs of persons with cancer.

With the firm intention of fostering a culture of environmental awareness in the various groups that work in the Infraestructura, Pipelines, Central Offices, and in the work centers of the cables, automotive parts, CIDEC Jurica and CT sectors, 6,410 talks on various environmental subjects were held in 2023, with the attendance of 69,314 persons

Climate Change

Grupo Carso promotes a sustainable corporate culture of communication, training and practices in the various work places so that all its employees will assume a commitment towards society and the environment, to thereby minimize contamination and in this manner preserve and take care of our home, which is the planet Earth. We seek to establish, through the providers who market electricity, a practical co-generation of power system that will leave a low carbon footprint because of its high efficiency, to provide power to the 16 Grupo Condumex plants and Grupo Sanborns establishments, with clean technology and high and sustainable efficiency.

In 2023 the total emission of Greenhouse Gases in Grupo Sanborns, Grupo Condumex, Carso
Infraestructura y Construcción and Elementia/Fortaleza were:

Scope 1 Scope 2 Scope 3
Co2 (Tons)
3,550,728
1,016,517
No

Throughout the year, the consumption of energy by Grupo Condumex from an efficient co-generation source with a lower emissions factor and cleaner than CFE electricity was 81,304,685 kWh, avoiding the emission of 12,545 TonCO2e, and additionally, with a self supply photovoltaic solar energy source of 2,320,469 kWh, avoiding the emission of 1,146 TonCO2e. The Grupo Sanborns companies carry out actions that take advantage of the various technological advances that offer advantages in the use and preservation of natural resources that provide substantial savings in water and energy, in addition to generating protocols for the efficient use of energy.

For more details on the environmental activities of Condumex and Carso Infraestructura y Construcción see the 2022 report in https://www.carso.com.mx/sustentabilidad/

Labor, Health and Safety Performance

Grupo Carso is a source of permanent and temporary employment for more than 94 thousand persons in Mexico, Latin America and some countries of Europe. During 2023, the payroll remained almost stable, with a variation of -0.4%, taking into consideration that in 2022 there were 14 thousand additional employees from the incorporation of Elementia and Fortaleza into the Group. The employees of all the Group subsidiaries enjoy salaries that are in accordance with the law, the labor market and their level of responsibility in the department to which they belong.

2020 2021 2022 2023 Variation.% 2023 - 2022
Employees
76,161
80,685
94,827
94,458
-0.4%

In the consolidated payroll, 41% are women and 59% are men. In accordance with Grupo Carso’s policy of inclusion and human rights, the recruitment of personnel observes a practice of non-discrimination, benefits, working conditions, training and promotion for its workers according to their skills and profiles. Grupo Carso scrupulously observes the labor laws in its application of benefits, without the distinction of functions or responsibilities, and all its personnel has access to information, services, facilities and products, whatever their situation in life may be. The Company practices gender equality and its male and

female employees have equal benefits, obligations, responsibilities and opportunities. These policies of equality and non-discrimination are mentioned in the Codes of Ethics and Principles of Conduct in the Workplace of all the companies of the Group.

We practice the recruitment of personnel without consideration of their age, gender,
sexual orientation, civil status, religion and intellectual capacity, basing these practices
on our agreements with various public and private institutions. Our permanent Inclusion
programs are:

  • Hiring of persons with slight or moderate Intellectual Disability.
  • Hiring of persons with a mental disability.
  • Hiring of senior citizens.
  • Hiring of Single Mothers, or of women who have suffered violence against women.

We work in a continuous manner with the following institutions:

  • Multiple Attention Centers (CAM)
  • Mexican Confederation of Organizations for Persons with Intellectual
    Disabilities (CONFE)
  • Comprehensive Family Development (DIF)
  • Best Buddies
  • National Institute of Women of Mexico City (INMUJERES)
  • National Institute of Senior Citizens (INAPAM)

ourses in technical, operational, advancement,
developmental, safety and healthcare training.

In a consolidated manner, we had 1,041,016 participants in training courses focusing on the improvement of abilities of employees. Among these, 342,631 persons received 70 to 181 hours of training in matters such as: Awareness and care of the environment; diversification, fairness and inclusion; anti-fraud and corruption; anti-monopoly; code of ethics; how to generate an ambience of respect and prevent harassment and discrimination; conflicts of interest; prevention of money laundering, and updating courses on various NOM standards, for STPS as well as for SCFI and NMX-414-ONNCCE-2017

TOTAL PARTICIPANTS
Number of trained employees
1,041,016
Number of hours dedicated to training
8,157,388

In the “Train yourself for a job” platform of the Carlos Slim Foundation, work was continued, both as a means of attraction of new talent as well as a means of training for operational, maintenance and sales personnel. Courses continue to be created and delivered for the purpose of integrating employees into the company and developing their skills and abilities in order to improve their performance and thereby propitiate their development within the Company. The subjects of consultative sales, technology, books, Apple products and leadership, among other subjects, were addressed. These courses were given in person as well as online through Zoom, Meet, Webex and Teams.

Other personal development programs are the ASUME program (Association for the Betterment of México), whose objective is to contribute to the comprehensive development of persons through a human development program for the constant pursuit of personal betterment. Also, the Social Wellbeing program, which works in three fundamental aspects: Advancement, Health, and Culture and Recreation. In 2023, virtual conferences were held with a scope on a national level to the benefit of Grupo Carso employees and their families, which provided the opportunity to exchange experiences and to resolve questions with the specialists in the aforesaid aspects.

The Mexican Philanthropic Center (CEMEFI) awarded the title of Socially Responsible Company to Grupo Condumex and to Carso Infraestructura y Construcción for the twelfth and thirteenth consecutive years, respectively, for their dedication in the application of actions for the care and protection of the environment, their contributions to Society, and their ethical behavior towards their employees.

Companies with the title of socially responsible campany
Condumex : 12 consecutive years
Cicsa: 13 consecutive years

2023 LARGE COMPANIES TRAJECTORY OF RECOGNITION 2023 SMALL COMPANIES
Concensol, S.A de C.V
12 years
Servicios Integrales GSM, S. de R.L de C.V
Cordaflex S.A, de C.V
12 years
Conticon, S.A de C.V 12 years
Condumex, S.A de C.V
12 years
Conalum, S.A de C.V 12 years
Carso Infraestructura y Construcción, S.A de C.V
GSM Bronco 13 years
Arneses Eléctricos Automotrices, S.A de C.V
Arcomex, S.A de C.V
12 years
Arneses Electrónicos Arnelec, S.A de C.V
12 years

Companies with the title of socially responsible company
Carso infraestructura y construcción 13 consecutive years

2023 LARGE COMPANIES TRAJECTORY OF RECOGNITION
Operadora Cicsa, S.A de C.V
12 years
Carso Infraestructura y Construcción
12 years

Grupo Sanborns Social Actions

In Grupo Sanborns we promote a policy of inclusion, and we hire persons with mental disabilities, in cooperation with the Best Buddies Organization. Additionally, in Mixup we are totally committed to helping children with hearing problems, through the campaign known as “¡Oye! tú que oyes!, help to educate a deaf child.” Since many years ago, we have been urging customers in our Mixup stores, as well as in our https://www.mixup.com/ webpage and in social networks to make donations, beginning at $10 pesos. Promotora Musical also makes contributions and the amounts from both these sources are delivered to the Pedagogic Institute for Language Problems, I.A.P. (IPPLIAP), in which teachers and family members receive training in sign language and primary and secondary schooling is provided for deaf children, in order to reintegrate them into society.