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2020 ANNUAL REPORT

SUSTAINABILITY ACTIVITIES

Social Performance

Regarding the operations of sustainability, the Carlos Slim Foundation has 100 ongoing programs and projects in 13 different categories, among which are education, employment, health, sports, the environment and culture, reaching millions of beneficiaries in Mexico and other Latin American countries.

77.4

million doses of AstraZeneca's COVID-19 vaccine from AstraZeneca Pharmaceuticals for Mexico, part of the Carlos Slim Foundation's actions carried out during 2020.

The “Mexico United” program continues with the actions oriented towards the relief of properties affected by the earthquake that occurred in September of 2017, applying the resources contributed by donors, which were multiplied six times by the Carlos Slim Foundation. These resources have been used for the repair of 246 schools, 2,285 homes, 104 hospitals, 4 markets and 48 cultural patrimony structures, which were repaired or rebuilt in various States of the Republic of Mexico, mainly in Mexico City, Morelos, the State of Mexico, and in Oaxaca. The program publishes a monthly report on its activities to keep donors and the public in general informed of the progress being made.

In 2020, in response to the COVID-19 pandemic caused by the appearance of the Sars COV-2 virus, the Carlos Slim Foundation began permanent actions of assistance to the citizens of Mexico and other countries. Among those actions, the following are noteworthy:

  • The collaboration agreement signed between FCS and AstraZeneca to contribute to the production and distribution, at no profit, of 150 million COVID-19 vaccinations in Latin America. 77.4 million of those vaccinations are for Mexico. The vaccine, developed by the University of Oxford and AstraZeneca, will help to prevent a greater loss of human lives and to revive the economy. Also participating in the collaboration agreement are the biotechnology companies mAbxience of Argentina and Liomont of México, as well as the governments of several Latin American countries.
  • Support to the conversion of spaces to spaces for the treatment of COVID-19 in three of the largest cities in Mexico: Mexico City, Guadalajara, and Monterrey. One of the most important of those converted spaces is the Temporary COVID-19 Unit (UTC-19) of Mexico City, in which more than 8,200 patients have been treated up to March 31 of 2021. The UTC-19 has 617 beds, 60 of them for therapy.
  • Contribution to the diagnostic capacity of the country by the donation of equipment and more than half a million kits for COVID tests to the Diagnostic and Epidemiological Reference Institute laboratories (INDRE), the State Public Health laboratories and to highly specialized National Health Hospitals such as the Salvador Zubiran National Institute of Medical Science and Nutrition, the National Institute of Respiratory Diseases (INER) and the General Hospital of Mexico.
  • The donation of more than 2.2 million pesos-worth of Personal Protection Equipment for health workers (N95 masks; surgical masks; standard polycarbonate safety goggles; discardable gloves; gowns, caps and discardable surgical shoe covers), as well as other medical equipment (vital support ventilators). The Foundation also contributed, along with other organizations, to the development and production of the first ventilators made in Mexico for the treatment of seriously ill patients.
  • Contribution of food for the health personnel in 35 public hospitals, donating, up to the present date, more than 1.7 million pesos in meals elaborated by Sanborns for more than 4 thousand health professionals and workers in the said hospital centers.
  • Support to the research and protocols for the treatment of COVID-19 patients in: the National Institute of Respiratory Diseases (INER), the Salvador Zubiran National Institute of Medical Science and Nutrition, and the National Institute of Cancerology.
  • The creation of a tutorial and courses hub for health professionals; the elaboration of protocols for the containment of the pandemic and for the return of workers to their jobs; the creation of a site with information on COVID-19, with downloadable graphic material and audio-visual videos for the public in general.

Environmental Performance

One of Grupo Sanborns’ characteristics is its scrupulous compliance with the environmental standards to which it is subject. It takes great care in ensuring, in each of the units or establishments in which it operates, that all the corresponding authorizations have been obtained and that all the environmental requirements are being observed. It pays special attention to matters concerning the control and management of residual waters, emissions into the atmosphere, and the management and final disposal of solid residues and dangerous materials when they must necessarily be generated in the operation of its business. Towards these effects, it normally contracts the services of specialized companies, duly authorized by the respective environmental or sanitary authorities. In this sector Grupo Sanborns has a low environmental impact.

Labor, Health and Safety Performance

Grupo Sanborns is a source of employment for more than 40,857 full and part-time workers in Mexico, Latin America and some countries in Europe. In 2020, the number of jobs decreased by 1.8% from the previous year. The Group’s employees have salaries that are in accordance with the laws, market, performance and level of responsibility within the areas in which they are employed.

Among the benefits in place in Grupo Sanborns and its subsidiaries are the following:

  • Digital scholarships and scholarships for the employees’ children and direct family members.
  • Economic support for funeral expenses and paid holidays.
  • Self-managed Health and Safety in the Workplace Program.
  • Health prevention campaigns in collaboration with the Mexican Social Security Institute (IMSS) and the Secretariat of Health (SSA).
  • Civil Protection Programs with the training of Volunteer Brigades.
  • Personal development programs through ASUME, CRESE and the Social Welfare Program.
  • Courses through the “Train Yourself for a Job” platform of the Carlos Slim Foundation, for the basic training of operations personnel.
  • Training programs in sales and management skills.

2020 Results


Note: The increase and decrease was due to closures related to the COVID-19 pandemic, there are no savings but expenses avoided.

During 2020 the Human Resources Department continued its focus on the recruitment and development of talent with which to participate directly in the consolidation of the Company, focusing its efforts on one guiding principal: Customer service. Our mission as a business is: “To offer to our customers products and personalized service of the highest quality and at a fair price. The customer is the raison d’etre of our work.

Training Centers

For courses, chats and workshops we have the Sears Training Center, with headquarters in Centro Historico, the Carso salon in Tijuana, and 97 salons located in operating units, in addition to 47 Sanborns salons in the corporate offices, the Viaduct Plant and the foreign locations, which include Panama and El Salvador.

Technical, operations, developmental, formative, health and safety courses

A total of 6,993 courses were delivered during the year, with 99,789 graduates from Sanborns, Promotora Musical, Dax and Saks Fifth Avenue. Upon the opening and reopening of stores, 162 persons were trained in Sanborns. In regard to the training of personnel in Sears, an average of 53 courses per employee were held, and 697 managers and supervisors were trained related to their functions. A physical presence seminary was held, as well as a virtual classroom with 833 awareness-of-product events. In ClaroShop an average of 2 courses per collaborator were delivered.

In Sears, additionally, the Carso platform “Train Yourself for a Job” of the Carlos Slim Foundation was installed. The platform contains courses that improve the skills of all the employees in the units, corporate divisions and distribution centers, and the courses have produced a total of 155,176 certificates and 6,840 registered collaborators.

In the program called “Common Managerial Branch,” which is found in the Carso Train Yourself platform, a study was carried out for the purpose of improving the specific skills of the store managers. The specific activities carried out by 100 store managers were studied and monitored, with a total of 26 activities delivered for each manager and a general average of 9.1. Additionally, 34 managers, supervisors and Technical Services Department coordinators, with a general average of 8.6, were monitored.

Three venues were held for the Managerial Training School (Mexico City), with the participation of 74 persons. These venues began in September of 2019 and ended in March of 2020.

Through a process of selection and development, a personalized training program for Store Leaders is being developed. It began in November of 2020 and will end in March of 2021.

Scholarships

424 Telmex-Telcel scholarships were granted to collaborators or to their children during the year.

Scholarships 2020 2019
Digital Scholarships - Announcement
For the children of employees		 S/C 482
Telmex-Telcel Scholarships - 2019
For employees and their direct family members		 424 495
S/C without announcement

The ASUME program (Association for the Progress of Mexico) had a scope of 177 groups, 3,909 graduated collaborators, 283 facilitators graduated from Grupo Sanborns companies, and one collaborator enabled as an instructor.

ASUME 2020 2019 2018 Change %
20 vs 19
Groups 177 280 225 -36.7
Participants 3,909 3,279 1,767 19.2
Facilitators 283 239 35 18.4

In the Social Welfare Program, work was carried out in 3 fundamental aspects: Training, Health, Culture and Recreation, which included massive activities through video conferences. In 2020, events were realized in which 79,186 persons (including 75,330 collaborators and 1,785 collaborator family members) received benefits from the various programs.

SOCIAL WELFARE 2020 2019 Change %
20 vs 19
Collaborators 79,186 50,890 55.6%

4,700

collaborators with application of COVID PCR tests and more actions to offer safe spaces to our customers.

CRESE

The Human Quality and Social Responsibility System (CRESE), in which 95 units have been internally audited in Sears in 2020, was continued.

Train Yourself for a Job

In the Carlos Slim “Train yourself for a job” platform, work was continued, both as a form of entertainment as well as for the training of talent for operational maintenance, reception and sales personnel in Sears, reaching a total of 1,540 certificates in 2020, compared to 550 collaborators in the previous year.

With the support of the Carlos Slim Foundation, actions were established for prevention and care of COVID-19 patients, to thereby minimize the effects of the pandemic. The strategy towards that end was developed in 5 stages: awareness; prevention; containment; supervision; and continuous improvement. Among the most outstanding of the said actions was the design and implementation of the protocols for the return to normalcy for customers, collaborators and providers; the implementation of sanitary filters in each work center, checking the health status of more than 21 million customers and all of our collaborators and providers; the establishment of new methodologies for remote work; the improvement of internal communications, with new channels and methods to reach all our collaborators; and the health diagnosis of more than 5,000 collaborators through the MIDO COVID program. In the vaccination against influenza program we vaccinated 7,148 collaborators, and in the application of tests for COVID PCR and antigens we reached 4,700 collaborators. With these and other actions we complied with the requirements of various authorities, thereby providing a safe environment for our customers, providers and collaborators.

Women represented 26% of the top “C” level of 66 executives in Grupo Sanborns.

The Company has established alliances with public and private organizations to promote the inclusion of persons with disabilities or with certain special conditions in Grupo Sanborns.

For more information and details, see the section on sustainability activities in the Grupo Sanborns S.A.B. de C.V. corporate webpage, URL: http://www.gsanborns.com.mx/english/responsabilidad-social.html