Insperia

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Sustainability

GRI

Report Parameters | Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report | FULLY

We are aware of the different challenges society faces with regard to sustainability. In response, our business strategy integrates sustainable practices into daily operations and the decision-making process.

As a result, we are presenting a sustainability report based on the Global Reporting Initiative methodology, in its G3.1 version. This year we have complied with a total of 121 complete indicators, allowing us to declare the reporting to be consistent with the criteria for Application Level B.

GRI

Governance, Commitments, and Engagement | List of stakeholder groups engaged by the organization | FULLY

Governance, Commitments, and Engagement | Basis for identification and selection of stakeholders with whom to engage | FULLY

Our Sustainability Approach

Based on the commitment we made in 2013, this year we structured a sustainability model that allows us to continuously adapt to the changes in our environment. Our philosophy is based on the generation of economic and social value, as well as on environmental care.

To implement the model, we based our actions on four specific pillars:

  • Internal well-being
  • Community
  • Environment
  • Sustainable economic value creation
Each of the pillars focuses on one or more specific stakeholders, which we have defined according to the impact our operations have on them and vice versa. Our commitment to our stakeholders is clear: to operate in a way that the benefits generated are reflected both economically and socially.

GRI

Governance, Commitments, and Engagement | Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group | FULLY

Governance, Commitments, and Engagement | Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting | FULLY

Our Sustainability Model

Communication with our stakeholders is key to building relationships of trust, mutual respect and long-term collaboration. In 2014, we continued implementing diœerent forms of communication and dialogue channels with each one, with the results that appear in the table “Communication with our stakeholders”:

GRI

Governance, Commitments, and Engagement | Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation | PARTIALLY

To ensure that the sustainability strategy described is implemented correctly, we actively participate in ALFA’s Sustainability Committee, adding our efforts to develop joint actions that allow us to achieve common goals in the field. Our values and ethical behavior guidelines strictly adhere to the ALFA’s Code of Ethics, which can be downloaded from the following link: http://www.alfa.com.mx/NC/filosofia.htm

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We also follow ALFA’s Anti-corruption and Bribery Policies and Practices*, recognizing the importance of operating under controls that enable us to ensure the legality of our processes.

*To find out more about the ALFA Anti-corruption and Bribery Policies and Practices, please download the Social Corporate Responsibility Report 2013 from the following link: http://www.alfa.com.mx/RS/reportes.htm

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GRI

Environmental | Total environmental protection expenditures and investments by type | FULLY

Nature and Sustainable Operation

Our greatest commitment is to care for the environment as we understand its significance in terms of permanence over time and quality of life. Our operating capacity is closely linked to the preservation of our surroundings.

Our approach is to optimize the consumption of natural resources and raw materials, reduce emissions and waste, and enhance process e¦ciency. All our companies have their own policies that enable them to define the procedures to follow under any given scenario. These policies are aligned to Alpek’s environmental objectives.

Internal and external audits are carried out on a monthly, quarterly and/or annual basis to ensure the proper management of all procedures. External audits are performed by government agencies, such as SEMARNAT, and quality and environmental certification agencies under ISO international standards.
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Environmental investments in 2014 were distributed as follows:
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During 2014, we invested US $21 million in actions that benefit the environment.

For example, as part of the implementation of the Environmental Management System in our Polyester operations, we carried out the following activities aimed at protecting the environment:
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•We identified the environmental issues applicable to each of the Company’s processes and services (generation of air pollutants, waste management, wastewater discharge, energy consumption, etc.), and established the operational controls applicable to each issue in order to minimize the environmental impact.
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•We trained the personnel on said issues and on the proper execution of the operational controls applicable to the processes and services.
•We identified all the company’s legal requirements related to its operations to avoid fines and environmental pollution.

GRI

Environmental | Materials used by weight or volumen | FULLY

Social: Product responsibility | Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures | FULLY

Social: Product responsibility | Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements | FULLY

Raw Materials and Use of Resources

The majority of the raw materials used in our processes come from oil, a non-renewable resource. We are, therefore, constantly striving to make the best possible use of them.
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One of the most important actions in this regard is a construction project for a storage sphere for propylene, a particularly significant commodity since it is available from a single supplier in Mexico. The proper storage facilities will bring several benefits, including:
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  • Stable feedstock inventory.
  • Reduction in the supplier’s emissions as we maximize the use of this raw material.
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The reuse of materials is one of our most important actions. Our PET bottle recycling plant in the United States has a capacity to recycle up to 73 thousand tons (more than 3.4 billion PET bottles) per year, representing the annual PET bottle consumption of more than four million Mexicans. In 2014 the plant recycled 48.6 thousand tons of PET bottles. Furthermore, we acquired CabelmaPET, S.A., which operates the only food-grade recycled PET (r-PET) plant in Argentina, with an annual capacity of 16 thousand tons. In addition to complementing Alpek’s capacity in Argentina for virgin PET resin,this purchase will enable us to oœer virgin and recycled resin in a single pellet, helping to conserve the environment and streamlining customer operations by eliminating unnecessary supply and mixing processes.
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Life-cycle phases of products submitted to evaluation processes in 2014

 

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NIA = No info available
NA = Not applicable
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We also complied with the legal regulations on the specification of the information contained in our products’ packaging, when applicable:
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GRI

Environmental | Direct energy consumption by primary energy source | FULLY

Environmental | Indirect energy consumption by primary source | FULLY

Environmental | Energy saved due to conservation and efficiency improvements | FULLY

Environmental | Initiatives to reduce indirect energy consumption and reductions achieved | FULLY

Economic | Financial implications and other risks and opportunities for the organization’s activities due to climate change | FULLY

Energy Efficiency

Lower energy consumption and the constant search for alternative renewable sources for procurement are priority issues. The start-up of our co-generation plant in Cosoleacaque, Veracruz, is evidence of the intense eœorts we are undertaking in this issue.
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The plant started operations in the last quarter of 2014 and is expected to generate approximately 2.77 million GJ of energy per year, enough to satisfy the annual consumption needs of approximately 360,000 users. It will also produce 2.1 million GJ a year of steam, equivalent to the annual energy demand of 63,605 homes. Steam generation has also enabled us to shut oœ the plant’s furnaces, reducing our environmental impact even further.
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Another of the opportunities arising from this project is that, in addition to covering our own electricity needs, we can supply the power surplus to other industrial users at more competitive prices. 93% of our installations use natural gas as their energy source, the cleanest fuel to date. In 2014 our energy consumption was distributed in the following way:
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As a result of other energy saving initiatives, we recorded a saving of 815 thousand GJ at the close of the year. This represented a 3.5% of our total consumption, equivalent to the annual consumption of approximately 25,178 Mexican families.
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Other undertakings in 2014 also brought positive results. In the Plastics and Chemicals segment, for example, we were able to reduce the energy requirement per ton of polypropylene produced:
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Our EPS plant generated 50% of the electrical energy consumed in its installations through its cogeneration plant. Similarly, at our polypropylene production plant we were able to fine-tune energy consumption in critical processes and thus achieve significant reductions.

GRI

Environmental | Total water withdrawal by source | FULLY

Environmental | Percentage and total volume of water recycled and reused | FULLY

Water Care

We know it is impossible to maintain sustainable operations without committing to a responsible consumption of water, one of the most important and vulnerable natural resources. For this reason, we are continuously implementing strategies for a conscientious water management.
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In 2014, water in Mexico tripled in price compared to the previous year. This, together with our environmental objective, drove us to enhance our water consumption eficiency.
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In 2014, our total water consumption was distributed in the following way:
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Thus, throughout the year we carried out actions that enable us to optimize our processes and advance towards our goals to reduce consumption and reuse a considerable percentage of the resource. By 2020, we expect to be recycling 90% of wastewater at our polyester plants.
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Among the initiatives put into practice during 2014 were:
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  • Inverse osmosis project, which recovers water from the cooling towers and subsequently sends it as the input current to the ultrafiltration section.
  • Optimization of cooling tower floats, helping us to achieve a level of 1.33 m3 /t efficiency in extracted water.
  • 100% fulfillment of water reuse activities through the effluent treatment plant at our caprolactam plant.
  • 25% reduction in the use of filtered river water at our Cooper River facilities.
  • Recovery of 1.8 million m3 at our PET and PTA facilities, as a result of the reuse of output flows from one area as the input for another area.
We treated 10.3 million m3 at our ten treatment plants, reducing total consumption by 11%, enough to cover the annual water needs of approximately 78,300 people. We were able to reuse 19% of it in our processes.
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In addition, in 2014 we reduced our total water consumption by  10%   year-over-year.

GRI

Environmental | Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected áreas | FULLY

Environmental | Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected áreas | FULLY

Environmental | Habitats protected or restored | FULLY

Environmental | Strategies, current actions, and future plans for managing impacts on biodiversity | FULLY

Biodiversity Conservation

Our facilities in Columbia, in the United States, and Zárate, Argentina, are the only ones located close to natural areas of high biodiversity. In both cases, the plants contribute economically and with human resources to support conservation. In 2012, the Columbia site obtained Wildlife Habitat at Work certification, granted by the association of the same name, which recognized companies that go beyond standard regulations and coordinate effœorts between the company, the community and employees to benefit biodiversity in and around the workplace.
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Furthermore, we carried out actions to preserve and enhance all our green areas and participated in reforestation activities in the diœfferent communities where we operate. The medium-term commitment is to develop integrated practices across all our facilities.
Actions carried out during the year included:
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  • The celebration of Earth Day, with talks on environmental care, the community helped with the reforestation of surrounding areas and school visits were made to talk to the students about the importance of looking after natural resources.
  • Participation in Sustainability Week in coordination with ALFA.
  • Invitation to employees to contribute ideas on how we can improve our environmental performance.
  • More intense involvement with government authorities such as CONAFOR to join forces and participate in pro-biodiversity programs.

GRI

Environmental | Total direct and indirect greenhouse gas emissions by weight | FULLY

Environmental | Other relevant indirect greenhouse gas emissions by weight | FULLY

Environmental | Initiatives to reduce greenhouse gas emissions and reductions achieved | FULLY

Environmental | Ox, SOx, and other significant air emissions by type and weight | FULLY

Environmental | Total water discharge by quality and destination | FULLY

Environmental | Total weight of waste by type and disposal method | FULLY

Economic | Financial implications and other risks and opportunities for the organization’s activities due to climate change | FULLY

Reduction of Emissions and Smart Waste Management

One of the most important objectives of our sustainability strategy is the reduction of emissions and waste that have negative impacts on the planet.
In 2014, emissions from our operations were as follows:
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The following information is from the PET plant in Cosoleacaque, Veracruz, which generates NOx emissions due to the use of a chimney:
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Through our cogeneration plant in Cosoleacaque we will be able to avoid emitting an estimated 200 thousand tons of CO2. We will report these results in 2015.
Through other initiatives, we covered 100% of the Management Program to improve the air in Salamanca and eliminated steam leakages at our caprolactam production plants, avoiding the emission of 16 t/CO2 per day. All of this motivates us to continue along the road we have taken. It is important to note that, year after year, we have significantly reduced our emissions, as certified by international bodies such as ISO and UNFCCC. Our PET and PTA operations in Mexico, for example, maintain an average annual reduction of 100,000 t/CO2 . In 2014, they certified 390,000 t/CO2 in carbon bonds, thanks to the implementation of an Energy Integration Project, bringing the total to 900,000 t/CO2 at  year end.

The implementation of other actions in our companies recorded a total of 83.6 thousand tons of CO2 that were not emitted into the atmosphere, equivalent to taking 17,606 cars out of circulation for one year.

Regarding responsible, proper and smart waste management, DAK Americas continued to be a spearhead with its Zero Waste program. During the year, all its plants in the United States, Mexico and Argentina implemented the program, with actions including recycling, composting and/or converting waste into energy to meet by 90% our goal of non-delivery to more tan 200 landfill sites. Three have fully met this goal and the three remaining plants expect to do so by the end of 2015. In addition, a total of almost 3,175 tons of biological sludge was sent for composting.
The total of the most significant waste generated in 2014 was 17,216 tons, distributed as follows:
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Our objective is not only to properly manage waste, but also to reduce waste production. At our PET and PTA production plants, for example, we have achieved a 10% reduction in the generation of hazardous waste.
Results of wastewater discharge in 2014:
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One major action carried out in 2014 was the reduction of COD (Chemical Oxygen Demand) in the wastewater we send to the sea. This means that the water is increasingly cleaner when discharged, and as a result, has less environmental impact. Short- and medium-term environmental performance goals:
  • Construction of the polypropylene storage sphere.
  • Development of a biodiversity policy across Alpek.
  • Reaching the goal of Zero Waste in all DAK Americas operations.

Human Value and Social Action

We are convinced that the human element is the basis of any organization. We understand that our internal and external communities are vital for ensuring our permanence over time and obtaining a license to operate. In addition, the generation of social benefits allows us to ensure that the decisions we make have a positive impact on our people.

GRI

Social: Labor Practices and Decent Work | Total workforce by employment type, employment contract, and region broken down by gender | FULLY

Social: Labor Practices and Decent Work | Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations | FULLY

Social: Labor Practices and Decent Work | Percentage of employees covered by collective bargaining agreements | FULLY

Social: Labor Practices and Decent Work | Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements | FULLY

Social: Labor Practices and Decent Work | Ratio of basic salary of men to women by employee category | FULLY

Our Employees

Employees are our most important resource. For this reason, we make a constant effœort to ensure the well-being and personal and professional development of every one.
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Due to the nature of our operations, there is a predominance of male workers. However, Alpek is committed to gender equality in terms of benefits, opportunities and responsibilities. We adhere to the provisions of the ALFA Code of Ethics; our companies apply policies and use easurement systems and tabulators to ensure the equitable treatment of men and women, and avoid any gender distinction in the determination of wages or aptitudes when filling vacancies. One example of these policies is DAK Americas’ Equal Employment Opportunity Policy.
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Furthermore, Alpek does not discriminate on ethnic, disability, religious or any other grounds; the only relevant criteria for selecting our employees are their abilities and experience. In 2014, 16 handicapped people collaborated with us.
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Our workforce in 2014 was distributed as follows:
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It should be noted that our commitment to the personal and professional growth and development of our employees is ongoing. In 2014, internal mobility to cover vacancies was 66% at our PET and PTA operations. The benefits and allowances that employees receive include an annual bonus, vacation pay,grocery vouchers, a savings fund, long-service recognition and a pension plan, which consists of a fixed contribution by the company which starts at 4% of the employees’ salary with a ceiling of 17%.
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In accordance with our commitment to human rights, we respect the decision of our workers to organize through collective agreements. 63% of our employees belong to a union. As part of our duty to keep employees informed, Alpek gives prior notice of four to eight weeks before any important change(s).

GRI

Social: Labor Practices and Decent Work | Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and gender | PARTIALLY

Social: Labor Practices and Decent Work | Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases | FULLY

Social: Labor Practices and Decent Work | Health and safety topics covered in formal agreements with trade unions | FULLY

Occupational Health and Safety

Ensuring a safe and healthy working environment for those who work in our company is one of our biggest responsibilities and we comply with, and go beyond, the provisions of the law. We are constantly implementing programs aimed at increasing safety in processes, employee training for a correct performance in the workplace and initiatives that encourage healthy living practices.
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During the year, we invested a total of US $4.4 million in actions to enhance the safety of the entire workforce. Several of our facilities accomplished important results, for example:
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  • Indelpro reached 2.3 years without any disabling accidents.
  • DAK Americas in Cosoleacaque achieved six years without any disabling accidents.
  • Petrotemex implemented more than twenty risk reduction actions and no significant incidents were reported in the handling of container units.
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Accident rates in 2014 compared to 2013:
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It is a priority for Alpek to ensure that employees work under the strictest protection controls, especially because some of the activities carried out at the plants involve a certain degree of risk. For this reason, and in dherence to ALFA practices, we are constantly working on initiatives to reduce accidents and occupational illnesses, with the support of safety, health and higiene committees on which employees participate. Our plants have health units, specific programs to educate and contribute to employee health, and vaccination, nutrition and physical activity campaigns. These aspects are covered by internal regulations.
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This year we invested US $14.3 million in close to 40 campaigns, programs and initiatives to benefit the physical and emotional well being of the workforce. Among other activities, we gave talks on specific topics, such as the prevention of hearing impairment and osteomuscular injuries, among others. A total of 3,391 employees were benefitted.

GRI

Social: Labor Practices and Decent Work | Average hours of training per year per employee by gender and by employee category | FULLY

Social: Labor Practices and Decent Work | Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings | FULLY

Training and Development

The training of our employees is fundamental for Alpek; in 2014, we invested US $1.4 million in this matter. A total of 2,374 employees benefitted from an average of 39 training hours per person. We provided training from induction into the company to talks on handling retirement, through programs such as the Employee Assistance Program in the United States, or the distribution of shares for retirement and pensions granted by the IMSS in Mexico. In addition, during 2014 we authorized a total of 132 scholarships for employees who wished to continue with graduate studies.
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Alpek’s commitment to education is not limited to company employees. In 2014, 192 of our employees’ children received support and scholarships from elementary school to high school.
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We also understand the need to live a balanced life and offœer ample opportunities for recreation activities and development programs for our employees and their families. In 2014, we invested US $155 thousand in this area with the participation of 4,052 people.

GRI

Social: Society | Percentage of operations with implemented local community engagement, impact assessments, and development programs | FULLY

Social: Society | Operations with significant potential or actual negative impacts on local communities | FULLY

Social: Society | Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities | FULLY

Economic | Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation | FULLY

Economic | Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation | PARTIALLY

Economic | Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement | FULLY

Our Communities

We are aware of our responsibility to the communities close to the places where we operate. All our sites constantly evaluate the risk of negative impacts on the communities and undertake actions to mitigate them.
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Preventing negative impacts is not enough. We strive to ensure that our operations have a positive impact on the community through health programs, safety training measures, meetings with neighbors of the plants, support programs for the creation of infrastructure, and direct support for the most vulnerable sectors.
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In 2014, we invested US $31 thousand in actions to improve infrastructure in our neighboring communities, benefitting more than 1,650 people. Other actions carried out were:
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  • Petrotemex implemented its Vive Verde program, through which it holds talks in schools on sustainability.
  • Univex began to oœer free medical consultations to members of its most vulnerable communities. In addition, as part of its process activities, it tests its fertilizer on land acquired for the purpose. This year it donated the entire crop produced as a result to neighboring communities, and will continue to do so in the future.
  • Talks were given on safety in the home, first aid and burns.We also implemented programs for young students in our communities: more than 7,000 students benefitted from support and donations to 53 schools near our operating sites, and 135 students completed their internships at our companies.
Furthermore, in an eœffort to increase local economic development, our companies use criteria to select suppliers from the city, state or country where they operate. Approximately 62.5% of our suppliers are local. Alpek adheres to ALFA recruitment practices, considering local candidates first to cover vacancies and keeping the workforce in the companies we acquire, as far as possible.
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One of our short- and medium-term commitments is the development of community engagement policies at the business unit level and as a group.
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GRI

Organizational Profile | Awards received in the reporting period | FULLY

Governance, Commitments, and Engagement | Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses | FULLY

Governance, Commitments, and Engagement | Memberships in associations (such as industry associations) and/or national/international advocacy organizations | FULLY

As part of the community engagement strategy we have already implemented, we collaborate with associations, institutions and business chambers to create strategic partnerships that enable us to generate actions that are mutually beneficial. In 2014, we participated in the following:
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Awards and certifications 2014

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