Towards Zero Waste

Our commitment:

Promoting a circular economy and reducing waste

throughout our value chain with sustainable packaging, efficient operations, and food and water waste reduction.

Waste reduction can be a means for organizations to achieve environmental, social and economic objectives, suggesting a change in production and consumption models to embrace this challenge throughout the world.

Sustainable packaging

We have projects aimed at improving packaging quality while also using the materials needed to ensure the properties required for product protection, also ensure that these materials can be easily recycled and the existence of necessary mechanisms and alliances in the countries where we operate, with the purpose of being able to achieve post- consumption recycling at the end of the useful life.

By 2025, 100% of our packaging will be recyclable, compostable, or biodegradable

Throughout this year Brazil reduced its Bisnaginhas packaging weight by 17%.

Mexico eliminated the use of internal wrapping for its Oroweat bread; plastic straws were eliminated from Nito and Gansit milk drinks, Ricolino reduced multi-packaging weigh by 33% in their products.

The USA reduced bag weights for private label bread by 7%.

Spain reduced bag weights by 14% for its white bread.

In the UK, bagel bag weights were reduced by 10%

By 2025, 100% of our packaging will be recyclable, compostable, or biodegradable

We worked with our community of experts, where, packaging subject-matter leaders, share best practices and project progress.

By 2025, 100% of our packaging will be recyclable, compostable, or biodegradable

We continue working in collaborative alliances to drive and promote post-consumption recycling in those countries where we are present.

By 2030 our goal is to guarantee that 100% of our packaging supports a circular economy and so we are fostering recycling projects. Spain launched the first bag for Oroweat Bread and Artesano Bread with 30% post- consumption recycled material.

Waste

The waste we produce come primarily from raw materials, processing, packaging (primary and secondary), maintenance (machinery and vehicles), cleanup, restrooms, and cafeterias.

Our commitment is to divert 100% of our waste from landfill, prioritizing reuse and recycling.

México y Latin Sur

Identifying and changing of packages due to bulk handling of some of our raw materials. Up to 2021, we have refrained from producing 290 tons of waste, reducing the use of plastic.

Italy

Substituting industrial and broken pallets with rebuilt ones, thereby saving on 713 pallets, which is equivalent to 13,119 kilos of plastic saved.

Food Waste

reducing food waste produced

Waste Committee / returns

This is the basis for identifying areas of opportunity through root-cause analysis.

Back to basics

Encouraging staff area to facilitate the work of its associates.

A culture of How Can I Be of Assistance?

Encourages staff area to facilitate work for operations associates so they may concentrate on achieving quality requirements and objectives.

Sales and Operations Planning

Aligning value chain with market demand.

The path to reliability

Ensuring proper operability of machinery and equipment to maintain optimum levels of reliability and profitability.

Aware of the responsibility we have to reduce food waste, at Bimbo we have the practice of making donations to food banks in the US and Latin America.



Alliances


Grupo Bimbo has entered into collaborative alliances with different organizations, such as:

Pacto por la Comida
Mexico

#SinDesperdicio
Latin America and the Caribbean

Food Waste Action Coalition

Too good to go
Europe

Water

The primary use of water in our operations takes places during cleaning processes and, therefore, optimization is vital to achieving our water saving goals.

We look for alternative water-use technologies and to improve treatment and reuse in discharges.

Net Zero
Carbon Emissions

Our commitment:

achieve Net Zero Carbon Emissions by 2050

maximizing the use of renewable energy and optimizing the use of our resources to minimize CO2 emissions

A carbon footprint represents the impact on our environment caused by human activity. In other words, the environmental mark left on the planet by a person, product, or organization as a result of day-to-day actions.

Our total emissions
Baseline 2019

In total, only 11% of our GHG (greenhouse gas) emissions fall into the fields of Scopes 1 and 2.

Scope 1

Direct emissions from fuel used in bakeries and other plants, vehicles, and refrigerants.

Scope 2

Emitted directly from the electricity we use in our bakeries and other plants, vehicles, and refrigerants.

Scope 3

Indirect emissions within our value chain produced by a third party, for raw materials, services, investments, and outsourced distribution.

We have reduced our scope 2 emissions by 60% as compared to our baseline when considering that our Company has grown 10% in tons of production.

Aware that there are many challenges ahead, detailed planning is required for short, medium and long-term objectives leading to net zero carbon emissions.

Our path towards
Net Zero Carbon Emissions

Strategy design
and planning

For several years we have been working on plans designed to reduce our carbon footprint:

By 2021, we are the first Mexican food company to sign the commitment to net zero carbon emissions by 2050, with objectives validated by Science-Based Targets, and part of the UN Race to Zero campaign through the Business Ambition initiative for 1.5°.

Decarbonizing our
energy sources


By 2025 we will have reached Scope 2 zero net carbon emissions, which are caused by all the electricity sources used within our processes.

Decarbonizing direct
operations and supply chain

By 2040 we should be nearing scope 1 zero net carbon emissions; that is, direct emissions generated in our internal operating processes, such as the fuels used in our ovens or delivery fleets.

Decarbonizing
indirect operations


Lastly, we will conclude the decarbonization of our scope 3 emissions (indirect emissions) which are produced by third parties within our value chain to make our products available to all.

Energy

Energy Efficiency

During 2021, Bimbo Mexico initiated a newpractice: electric motor driven pumps for workwith dough, producing a 12% saving in the useof electricity for air compressors and which wasreplicated in 14 productions centers, thus savingover 300,000 kWh in four months.

Our achievements

The use of ultrasonic chambers to detect leaks, with annual savings of: Barcel, 69,925kWh; China, 180,000 RMD

Replacements with high-efficiency motors: Latin Centro, 20% less energy used as compared to conventional motors.

Renewable Energy

Electromobility

The company’s road to electromobility began in 1994 in downtown of Mexico City with recreational vehicles adapted for goods distribution, and in 2012.

“Sello verde de verdad” Certification
Bimbo Colombia

Colombia follows our commitment to sustainable practices such as: washing stations, GNV vehicles, ecological image, dry washing, tractor-trailers with EURO IV, 100% electric vehicles, ECO transportation, and 100% gas trucking rigs.

Transporte Limpio Program
LAS Giro Limpio

The Energy Sustainability Agency of Chile recognized Ideal SA with Clean Line of Business certification for its transportation fleet, voluntary national program that certifies and recognizes efforts by transportation companies in the field of sustainability and energy efficiency, as well as load generators who prefer carrier companies.

Intermodal
(Vehicles and Logistics)

We optimize our distribution processes with Intermodal, a project using marine and rail transportation, which has allowed for improvements in delivery times and reductions in our carbon footprint.

Convert into
Regenerative Agriculture

Our commitment:

Enrich soils, capture carbon, enhance soil health,

reduce greenhouse gas emissions, build resilient ecosystems, making efficient use of resources needed in production.

Aware of the need for practices that enable us to contribute to enhanced production systems and to the sustainable supply of raw materials, we promote the empowerment of farmers and suppliers, thereby protecting nature at the same time.

Our path to regenerative agriculture

At Grupo Bimbo we are committed to promote regenerative agricultural systems, biodiversity, and ecosystem health through specific regional practices aimed at minimizing soil disturbance, improve water cycles, reduce our carbon footprint, promote farmer development, and source sustainable raw materials.

Some of the regenerative agricultural practices with the greatest impact on reducing carbon and water footprints are: incorporating crop rotation; implementing beneficial microorganisms to increase plant and soil health; and agricultural technology that generates greater water and fertilizer efficiencies.

During the 2021 spring/summer maize cycle in Jalisco, over 7,000 tons were harvested, in a surface area of 900 hectares, with the participation of 41 farmers.

Innovative and enhanced plots

In 2021, the setting up of school plots began as a complement with the purpose of implementing regenerative practices to test different technologies and software to reduce carbon footprints and demonstrate the benefits they can provide farmers in increased crop profitability.

Potato

Regenerative practices were put into place for 430 hectares of potato, which include crop rotation and cover crops.

Our achievements

Aware that regenerative agriculture goals are ambitious, we nevertheless know that with hard work, creativity, and close ties with our farmers, growers, suppliers, scientists, governments, and colleagues this aspiration will become a reality, transforming into a more resilient food system.

Sustainable supply

Sourcing

We rely on our suppliers as strategic allies who join efforts towards meeting common objectives.

Furthermore, we continue working with tools that inform us on the current situation of our suppliers of key raw materials, thereby identifies strengths and areas of opportunity, and helping to develop capacities and achieve ongoing improvement in sustainability performance levels.

Since we support local consumption, in places like Mexico 97% of sourcing of strategic categories like raw materials and packaging is with local communities.

We have SME development programs under our Deseo (Desire) program, we have supported 442 small and medium-sized enterprises through ongoing education in quality-related subjects like food safety, the environment, ethical process standards to facilitate the managing of their businesses.

Sustainable supply

Palm Oil

In keeping with our Global Policy on Palm Oil, we continue updating traceability data for the supply chain.

We have achieved considerable success regarding mill traceability. In 2016 we reported 86% for palm oil, as opposed to 94% nowadays, and 76% for palm kernel oil, versus 100% today. Furthermore, Grupo Bimbo increased the traceability scope, going from 90 to 95% of supplied volume.

Transformation Projects

In 2021, the project focused on developing capacities in social issues identified as priorities for the industry, and in creating the opportunity for dialog between civil society and palm oil companies.

Conservation Projects

Investments were made in two landscaping projects in the state of Chiapas, Mexico. The region is a priority because it represents 60% of palm oil volumes for Grupo Bimbo and it is considered an area of the highest risk for deforestation in Latin America.

Sustainable supply

Monitoring of Deforestation

Throughout 2021, Grupo Bimbo monitored the deforestation of its supply chain through the use of Starling, satellite-based technology created by Airbus and the Earthworm Foundation.

In addition to using this tool, suppliers covered by this monitoring have been approached to continue forward in verifying the alerts of detected deforestation.

A. Small Farmer Resilience
Socioeconomic and environmental diagnostic research was conducted during the first half of the year with the pilot groups, with the purpose of creating an action plan for 2025.

B. Conservation and Recovery
Maintenance of 15 hectares of mangroves reforested in the core area during the previous year continued during the second half of this year, and 5 hectares of mangroves lost to the fire were replanted.

C. Soil Use
In coordination with the Reserve administration, work continued with the social extractors to prepare an Action Plan in compliance with the Management Program for La Encrucijada.

Sustainable supply

Soybean

Grupo Bimbo has continued rapport with its suppliers who, representing 91% of the risk volume, are key to the South America region in evaluating their achievements in the following matters:

The transformation project responds to risk management of the supply chain in Mato Goso, Sorriso, Brazil.

The purpose is to create capabilities in workers to mitigate the impact of the use of chemicals on the health and safety of both the environment and the workers themselves.

Sustainable supply

Sugar

We dialogued with suppliers to discuss improvement opportunities in the sections established.

Among potential lines of action for 2022, we identified the following:

  • The need to develop a Social Permit for Operation.
  • Disseminating and communicating commitments in human rights throughout the entire supply chain.
  • Ensuring respect for human rights in the most vulnerable links of the chain.
  • Reinforcing an internal operations claims mechanism and for external said operations.

Sustainable supply

Cage-free eggs

Animal wellbeing is part of the principles established and recognized by Grupo Bimbo within its Global Policy on Agriculture and its Sustainability Strategy, so that all operations and sourcing may gradually head towards a production system where the five animal liberties are respected: no hunger, thirst and malnutrition; freedom from fear and suffering; freedom f rom physical or temperature discomforts; free of pain, injuries, and disease; the freedom to express normal patterns of behavior.

Grupo Bimbo has deployed a strategy of migrating to cage-free chicken eggs, considering the following aspects:

Commitment Status

Bythecloseof2021,weachievedaneggsupply chain that is 100% cage free in the UK, with a considerable accomplishment of 26.3% and 31.1% in Canada and Latin Centro, respectively.

Sustainable supply

Cocoa

To continue with our support of Mexican farming, we offer a technical training and follow-up program on sustainable practices for small cocoa farmers. In addition to perfecting their production processes, it guarantees the sale of their production to Grupo Bimbo.

To continue with our support of Mexican farming, we offer a technical training and follow- up program on sustainable practices for small cocoa farmers. In addition to perfecting their production processes, it guarantees the sale of their production to Grupo Bimbo. The program will be performed with ECOM Agroindustrial Corp Limited, one of our major commercial partners. The purpose is to support 17 farmers from three municipalities in Chiapas: Hiuxtla, Villa Comaltitlan, and Huehuetan. The desired result of this program is to create a cocoa value chain in the state and increase consumption.

Paper and Cardboard

As part of the transition program, we continue reinforcing capacity-building with our suppliers, and for the third consecutive year we welcomed them into Carbon Disclosure Project Supply Chain program.

One of the primary achievements of this program is the mapping of our suppliers’ maturity level, with whom we have the possibility of preparing training, as their needs dictate.

Environmental Standards

Biodiversity

En 2021 realizamos nuestro primer proyecto piloto: Adopción de Comunidades Forestales. Este proyecto, en alianza con Reforestamos y Bioforestal Soluciones Sustentables, se implementó en 6 comunidades del Estado de México, en la región de los volcanes Izta-Popo.

Sustainable Buildings

In order to obtain information on the degree of maturity regarding sustainability standards in our work centers, we used a digital platform to analyze our progress and areas of opportunity per establishment, allowing us to establish timely action plans.