At FEMSA, sustainability is integral to the way we do business. In 2021, we updated our Sustainability Strategy, which is grounded in our ethics and values, to focus on three strategic pillars where we can have the greatest impact.
To design this Strategy, we identified the most important sustainability topics for FEMSA’s internal and external stakeholders and conducted business-unit level materiality assessments for FEMSA Comercio, Coca-Cola FEMSA, and FEMSA Negocios Estratégicos.
The wellbeing of our people, dignified work, and professional growthView more
Development and wellbeing within the communities where we operateView more
Harmony with the environment and sustainable use of natural resourcesView more
Workplace survey rating in the top 10 against benchmark of high-performing companies
*According to Mercer Sirota Employee Engagement Survey
8.7 million hours of annual training for collaborators
To have a 20 percentage point increase of women in executive positions by 2030
20 million beneficiaries of our Community Wellbeing initiatives by 2030
85% renewable energy use across all our operations by 2030
Achieve a neutral water balance in all our operations by 2030
Zero waste from operations to sanitary landfills by 2030
The use of corporate governance best practices
Ethical and Socially Responsible Behavior
To demonstrate FEMSA’s sustainability commitment, in April 2021 we announced the placement of Euro-denominated sustainability linked notes in the international capital markets. FEMSA successfully issued EUR €700 million in senior notes due in 2028 bearing interest at an annual rate of 70 basis points over the relevant benchmark for a yield of 0.551%, and EUR €500 million in senior notes due in 2033 bearing interest at an annual rate of 88 basis points over the relevant benchmark for a yield of 1.068% (the “Notes”). This issuance represents the largest ever sustainability-linked bond by a Latin American issuer, and it was backed by 196 international institutional investors and was oversubscribed 1.9 times.
In connection with the Notes, FEMSA developed and published a Sustainability-Linked Bond Framework, which was prepared in accordance with the Sustainability-Linked Bond Principles 2020, as administered by the International Capital Market Association. The Framework includes certain Sustainability Performance Targets (SPTs) of the Company, which are aligned with the 2030 priorities of our Sustainability Strategy, particularly the transition to a circular economy and the mitigation of climate change. In accordance with industry best practices, we obtained a Second-Party Opinion from Sustainalytics on the Framework, who noted the strength of the ambition level of FEMSA’s SPTs. Per the terms of the Notes, the satisfaction of the SPTs will also be verified by an accredited external party, and if such targets are not satisfied by certain dates, there will be an interest rate step up of 25 basis points.
Pursuant to the Sustainability-Linked Bond Framework, FEMSA has committed to annually disclose a Sustainability-Linked Securities update. For more information on our progress against the Framework’s key performance indicators and SPTs, please see our 2021 Sustainability Report, which accompanies this 2021 Annual Report.
FEMSA’s Euro denominated Sustainability-Linked Bond received the “Corporate High-Grade Bond of the Year” award from Latin Finance.