Peñoles - Sustainable Development Report 2020

101-1.1, 102-40
Peñoles behaves ethically toward its stakeholders (shareholders, employees, community, customers and suppliers), with honest, above-board and fair dealings, respect for human and labor rights and tolerance for religious ideas, political preferences, social and economic condition, to avoid any type of discrimination. We also expect every one of our stakeholders to maintain the same ethical attitude, consistent with our Code of Conduct.

102-42, 102-43
Stakeholders are defined as such by their influence on or dependence on the company. The channels of communication we maintain with them encourage interaction, and we express our commitment to them through transparency and dialogue.

External communication

Communication with our external stakeholders is an essential part of our daily work. That is why one of the priorities of our transparency policy is to ensure that stakeholders, particularly the communities where we operate, are kept informed of all the actions we carry out.

During the year we kept communication channels open, with some modifications due to the pandemic, and we reinforced them to make sure we could keep our stakeholders informed of the various activities carried out by Peñoles.

In order to continue our flagship social programs in this changed environment, we developed and followed protocols for community engagement, maintaining all appropriate social distancing measures. We modified the use and consumption of information, especially in social media, and strengthened digital channels to publicize our social and health programs.

The results of all these efforts taught us the importance of making the most of communication technology to develop innovative materials and place more emphasis on dissemination of content.

During the pandemic, we redoubled these actions and adapted our communication channels to the needs of our audiences, above all in messages to reinforce the hygiene measures needed to keep everyone safe and healthy. We will continue to rise to the challenge of responding swiftly and appropriately, and sharing information reliably, efficiently and promptly.

In addition to our external communication media, we have other channels to support stakeholder engagement. Our commitment to them is underpinned by transparency, dialogue and trust.

HIGHLIGHTS OF OUR EFFORTS

We developed innovative interactive graphic materials to spread the word about our social responsibility and environmental actions. We also developed content for a training program in our soccer and baseball academies.

We designed campaigns to publicize social programs, among them Peñoles’ efforts to deal with the COVID-19 pandemic: reinforcing sanitary checkpoints at all our operating units, hiring medical personnel for the La Laguna units, following all sanitary protocols required by the public health authorities, community information campaigns about health care, donation of technological and personal protection equipment, and sanitary kits for health institutions and people who live near our operating units.

We installed an interactive infographic at the Teloloapan Municipal Museum, the first of its kind in the state of Guerrero, as part of our launch of new technologies.

We bolstered a digital strategy to increase the company’s presence and interaction in social media.

We kept in contact with the news media through newsletters and graphic material.

We prepared virtual reality videos to continue the Peñoles 360° Experience, which describes the company’s operations and environmental care actions, like wastewater treatment and reforestation, among others.

We produced interactive virtual reality videos to help train personnel in safety matters.

We participated in industry magazines to share the company’s experiences, and we continued to publish a magazine called Comunidad Peñoles, which puts out three issues a year in La Laguna.

Our crisis committees conducted an assessment of the climate and prospects in order to identify our strengths, take advantage of opportunities and work on possible risks.

During the year we kept communication channels open, with some modifications due to the pandemic, and we reinforced them to make sure we could keep our stakeholders informed.

Contractor at the Sabinas unit

STRENGTHENED BY
our stakeholders’ trust.

102-40, 102-42 STAKEHOLDER ENGAGEMENT
	Goal	Mechanism	Interaction
SHAREHOLDERS	Be the best investment option for our shareholders in the medium and long terms, by guaranteeing cost competitivity, growth, profitability and the survival of the company.	Executive Committee Meetings Shareholders’ meetings Various committee meetings Executive meetings. Annual reports: Financial and Sustainable Development Reports by the CEO	Provide accurate information that reflects the current status of operations and the business. Guarantee proper handling of company resources and assets. Report, eliminate and sanction any conduct that goes against good business practices, the free market, and fair business dealings. Define strategies to achieve the company vision.
EMPLOYEES	Be the best place to work, a company they can feel proud of which dignifies them by offering opportunities for development, respect and recognition in a safe environment and in a climate of teamwork.	Strategic and operational planning Code of Conduct Regular workteam meetings Talent Development, Evaluation and Performance System Communication mechanisms: intranet, video calls, dissemination campaigns, talks, etc. Materiality analysis Annual reports: Financial and Sustainable Development Línea Correcta hotline Annual reports: Financial and Sustainable Development Workplace environment survey	Encourage a working environment that enables each person to develop their full potential and creativity. Encourage collaboration and multidisciplinary teamwork so ever yone can contribute to process improvements. Provide competitive pay and benefits, based on results, avoiding any type of discrimination. Provide opportunities for professional update and advancement with gender equity. Precisely communicate plans, procedures, targets and indicators for evaluating performance and achieving goals, and ask for feed back regarding the above. Grant recognition through established mechanisms. Hire, train and retain the most capable people. Investigate and provide substantiated, timely, clear and correct response to concerns and grievances from our personnel. Promote and maintain safe and healthy workplaces and care for the facilities and the furniture. Respect freedom of association.
COMMUNITY	Be a socially responsible company, respectful of nature and supportive of the self-development of the communities where we operate.	Social Development System Media monitoring Grievance mechanisms External communication channels: social networks,, dissemination campaings, committees, interaction with social media Annual reports: Financial and Sustainable Development Socioeconomic diagnosis Perception survey Materiality analysis Fostering self-development	Respect culture and customs in the communities where we operate, in keeping with the legal order, morals and good customs. Help promote autonomous self-development of the communities where our business units are located. Establish mutually beneficial relationships and keep communication channels open. Maintain relations of respect, fair treatment and collaboration, impartially and independent of non-institutional interests. Avoid any kind of discrimination. Investigate and provide substantiated, timely, clear and correct response to concerns and grievances from our communities.
CUSTOMERS	Be a strategic partner that offers comprehensive solutions and inspires the trust needed to do business over the long term.	Client Administration System Service and satisfaction surveys Technical visits Product catalogue Annual reports: Financial and Sustainable Development Process certifications	Supply the products and services requested with the highest quality and timeliness. Conform to current Peñoles policies and procedures. Maintain quality, confidence and process improvements.
SUPPLIERS	Be a strategic partner, establishing mutually beneficial, long-term relationships based on good commercial practices and ethical commitment.	Trusted supplier catalogue Visits and audits Due diligence evaluations Opinion surveys Annual reports: Financial and Sustainable Development Training workshops Training and assistance	Hire suppliers and contractors based on quality, profitability, service , technical capacity, competitiveness and experience criteria. Keep all information received from suppliers and contractors strictly confidential during the entire process of accepting bids for the assignment of purchase orders and contracts. Share ethical and socially responsible business practices, with strict adherence to the Code of Conduct and respect for human rights.

Transport area, Tizapa plant