SUSTAINABILITY
REPORT 2014 BMV GRUPO 2014
CONTENT
Letter from the CEO and the Chairman of the Board 4 Organizations profile and Sustainability Statement 6 Economic Results 13 Main initiatives in sustainability 17 Relation with stakeholders 22 1. Clients 25 2. Suppliers 27 3. Investors 27 4. Group´s collaborators 29 5. Government and regulatory framework. 38 6. Society and environment 40 7. Summary of GRI Content 57
SUSTAINABILITY REPORT 2 INTRODUCTION
In this report Grupo Bolsa Mexicana de Valores presents the advances ,during 2014, in the field of sustainability of each of the companies in the group.
We recognize the importance of keeping our stakeholders informed on the internal activities and projects that promote the adoption of new corporate governance practices and the relevant actions within the social context and environment. The BMV Group, composed by financial services companies, identifies that the main environmental impacts of the group are in the use of paper, water and electricity.
For the preparation of this report, it was used as a reference the methodology of the Global Reporting Initiative (GRI), version 4, which responds to current trends and is the internationally most widespread method for business social responsibility reports (Responsabilidad Social Empresarial, RSE).
This report is published annually and is available on the page www.bmv.com.mx
Ramón Güémez Sarre [email protected] T: +52 (55) 5342.9000
3 SUSTAINABILITY REPORT BMV GRUPO 2014
Jaime Ruiz Sacristán
LETTER FROM THE CHAIRMAN OF THE BOARD
Today, we know that investors make decisions by evaluating other aspects beyond credit quality, where responsibility, social and environmental, incurred by corporates is a key value to consider.
In this context and taking into account that stock exchanges play an important role in the economic and financial development, we recognize the BMV Group is in a unique position to promote a culture of sustainability and corporate responsibility to ensure the economic growth and long-term business that will raise the level of investment practices.
In the global financial sector in order to encourage responsible investment approaches and corporate transparency, various initiatives have emerged as Sustainable Stock Exchanges (SSE) of the United Nations. To the respect I am pleased to report that the Mexican Stock Exchange is integrated in this initiative to strengthen our strategy and commitment to sustainability, aligned with best market practices.
Another effort at the global level, where the BMV Group confirms its firm commitment, is the Global Compact of the United Nations; which establish a platform for dialogue and learning in the field and provides a practical framework for organizations committed to sustainability and responsible corporate practices, framed in the ten principles universally accepted, which are grouped into Human Rights Standards, Labor, Environment and Anti- Corruption.
SUSTAINABILITY REPORT 4 José-Oriol Bosch Par
LETTER FROM THE CEO
The role of the BMV Group within the national financial system is of great importance as a mean of financing for Mexican corporations looking to grow and strengthen its operations, generating employment, economic growth and social welfare. Moreover, with the recent structural reforms and particularly the energy reform, there are new opportunities for the group to develop innovative investment vehicles to meet the new needs of the sector.
We consider it important to promote activities that provide efficiency in the internal processes and are focused on improving products and services that the market demands. In this sense, BMV Group, has worked to develop the sustainability strategy of the group in proximity to interest groups; we emphasize, that together with our authorities, launched a program to facilitate the listing of new companies on the Stock Exchange, we promoted the trading culture with events such as the award of financial markets and the entrepreneurial student. Also, we have launched a campaign to spread the code of ethics and conduct within the BMV Group employees through the “Group BMV, a group with values” program. Similarly, from the Mexican Carbon Platform, MEXICO2, we continue to promote the development of environmental markets promoting with corporations the neutralizing of greenhouse gases emissions (GGE).
Finally, I would like to point that the Mexican Stock Exchange continued to be of the sample of corporations that make up the Sustainable Index, a fact that fills us with satisfaction and pride while committing us to continue working and strengthening our sustainability strategy with all companies and employees of the BMV Group; supporting actions to promote a culture of corporate responsibility, social and environmental, in the Mexican financial market.
5 SUSTAINABILITY REPORT PROFILE OF THE ORGANIZATION BMV GRUPO 2014 PROFILE OF THE ORGANIZATION BMV Group Companies BMV - Bolsa Mexicana de Valores, S.A.B. de C.V. MexDer - Mercado Mexicano de Derivados, S.A. de C.V. SIF ICAP, S.A. de C.V. – Empresa de Corretaje resultado de una coinversión entre la BMV y ICAP Latin America Holdings, B.V. CCV - Contraparte Central de Valores de México, S.A. de C.V. ASIGNA - Asigna Compensación y Liquidación. S.D. Indeval - Institución para el Depósito de Valores, S.A. de C.V. Valmer - Valuación Operativa y Referencias de Mercado, S.A. de C.V.
BMV Group Customers Banks. Brokerage firms. Pension Funds, Investment Funds and insurance companies. Public investors. Issuers. Investing public.
Presence of BMV Group México Distrito Federal Centro Bursátil. Paseo de la Reforma No. 255, colonia Cuauhtémoc, Delegación Cuauhtémoc, México DF, C.P. 06500.
Terreno. Río Papaloapan No. 7 Bis, colonia Cuauhtémoc, Delegación Cuauhtémoc, México DF, C.P. 06500.
Monterrey Calzada San Pedro Norte, No. 250, colonia Miravalle, Monterrey. C.P. 64660.
Internacional Costa Rica, Panamá y Colombia através de Valmer. Chile- 50% de las operaciones de SIF Icap son operadas en este país.
Strategic Partners Group BMV IBM technology, risk management, trade association . CME Group: commodities , metals , energy, treasury certificates , Nasdaq and S & P . ICAP : OTC markets, interest rate swaps, government bonds, Peru and Chile. Lima Stock Exchange: Strategic partnership with the Stock Exchange Lima (BVL), S.A. a shareholding acquired in 2013 from 8.7% of total BMV Series A shares and a representative of the BMV to occupy a position in its directory . Standard & Poors : on indexes
SUSTAINABILITY REPORT 7 Major partnerships in which the Group participates BMV: AMIB - Asociación Mexicana de Intermediarios Bursátiles. ACSDA - Americas Central Securities Depositories Association. ABM - Asociación de Bancos de México. FIAB - Federación Iberoamericana de Bolsas. WFE - World Federation of Exchanges. CCP12 - Global Association of Central Counterparties. SMPG - Securities Market Practice Group. CCE - Comité de Mejores Prácticas Corporativas del Consejo Coordinador Empresarial CCE. MILA - Mercado Integrado Latinoamericano. Pacto Mundial de las Naciones Unidas. SSE - Sustainable Stock Exchange.
Board of Directors The administration of our business lies with our Board of Directors that currently consists of 15 Directors (Board Members), 7 of them are institutional advisors and their alternates and 8 are Independent Directors who have only one alternate Director.
The Board of Directors Members last in office for one year and have the opportunity to be re-elected on one or several occasions by the Annual Ordinary General Assembly of Stockholders. This, in terms of the provisions of the twenty- eighth and twenty-ninth articles of the BMV statues.
Our current Directors and their alternates were elected and ratified in our Shareholders’ Meeting held on December 1st 2014 and will continue in their duties until the next shareholders’Assembly. In accordance with the LMV (Ley del Mercado de Valores), at least 25% of Board Members of a public company must be independent; therefore, currently eight of the 15 members have this character. From pursuant to our Bylaws, most members of our Board of Directors and at least a majority of the members of each of our committees must be independent. Additionally, in the Audit Committee and the Corporate Practices Committee, all members must be Independent Directors. Disciplinary, Monitoring, Compliance and Securities Issuers Committees members are exclusively independent.
In addition, in the thirty second article of Mexican Stock Exchange bylaws, and article 124 by reference of 243, of the LMV, there are established the requirements for the appointment of Directors.
It is noteworthy that during June 2014 six Board of Directors meetings were held, always with the necessary quorum for these sessions.
Also, it is reported that as emolument for the his tenure is granted to each of the Board members, Commissioner and Secretary, the amount after deducting the corresponding tax equivalent in national currency of 2 gold ounces for their attendance at each of the sessions.
8 SUSTAINABILITY REPORT BMV GRUPO 2014
To avoid conflicts of interest, the Mexican Stock Exchange provides in the thirty-ninth article of its bylaws, that directors will required to refrain from participating and being present at the deliberation and vote on any matter for them involving a conflict of interest, without affecting the quorum required for the installation of the Board of Directos meeting.
List of committees BMV Group Audit committee. Corporate Practices Committee. Admission Committee Members. Committee Securities Issuers List. Technology Committee. Supervisory Committee. Disciplinary Committee. Regulatory Committee. Technical Committee on Index Methodology.
Counselors The names of our current Board of Directors members are listed and their alternates. It is worth mentioning that according to the best corporate practices, the Shareholders of the BMV agreed from 1o January 2015 to separate the functions of Chairman of Board and CEO.
BOARD OF DIRECTORS 2014-2015 of the BOLSA MEXICANA DE VALORES S.A.B DE C.V.
INSTITUTIONAL BOARD MEMBERS
MEMBERS SUBSTITUTES
Jaime Ruíz Sacristán (BMV) Tomás Christian Ehrenberg Aldford (Banco Ve por Mas)
Luis Robles Miaja (BBVA Bancomer) Marcos Martínez Gavica (Santander) Carlos Hank González (Banorte IXE) Diego Ramos González de Castilla (GBM)
Ernesto Ortega Arellano (Inbursa)(1) Eduardo Cepeda Fernández (J.P. Morgan)
Alonso García Tamés (Banamex) José Juan Pablo Aspe Poniatowski (Scotia Inverlat)
Rafael McGregor Anciola (Valmex) Carlos Bremer Gutiérrez (Value) Carlos Rojo Macedo (Interacciones) Roberto Valdés Acra (Actinver)
SUSTAINABILITY REPORT 9 INDEPENDENT BOARD MEMBERS
MEMBERS SUBSTITUTES
Francisco Gil Díaz (Telefónica)
Alfonso González Migoya (Acumen Empresarial) Ricardo Gutierrez Muñoz (Mexichem) Alberto Navarro Rodríguez (Consultor Independiente) José Luis Guerrero Álvarez (Grupo ICA) John Pietrowicz (CME) Fernando Ruíz Sahagún (Chévez, Ruíz, Zamarripa)
Alberto Torrado Martínez (Alsea)
Claudio X. González Laporte (Kimberly-Clark de México)
(1)In the Board Members meeting on Febraury 18th of 2014, the resignation of Mr. Eduardo Valdés Acra was accepted and
He was appointed as interim director Mr. Ernesto Ortega Arellano
CHAIRMAN
Jaime Ruíz Sacristán*
COMMISSIONER DEPUTY COMMISSIONER
Carlos A. García Cardoso Francisco Javier Pérez Cisneros (Deloitte) (Deloitte)
SECRETARY OF THE BOARD OF DIRECTORS DEPUTY SECRETARY Rafael Robles Miaja María Luisa Petricioli Castellón (Robles Miaja Abogados, S.C.) (Robles Miaja Abogados, S.C.)
*Since January 2015
10 SUSTAINABILITY REPORT BMV GRUPO 2014
MAIN EXECUTIVES
YEARS NAME POSITION AGE IN BMV
José Oriol Bosch Par Director General* 48 0
Pedro Manunel Zorrilla Velasco Director General Adjunto de Servicios 52 12 Corporativos y Relaciones Institucionales
Jorge Pío Alegría Formoso Director General Adjunto de Mercados 50 11 e Información
Roberto González Barrera Director General Adjunto de Depósito, 53 0 Compensión y Liquidación
Luis Fernando Carballo Arévalo Dirección General Adjunto de Tecnología 45 9
José Manuel Allende Zubiri Director General Adjunto de Promoción y 41 13 Planeación Estratégica
*Since January 2015
SUSTAINABILITY REPORT 11 Sustainability Statement BMV Group for sustainability lies in: enhance the capabilities of our employees, setting high standards in corporate governance, transparency, market ethics, high levels of service and technology. There are 3 pillars of our sustainability strategy:
Economic axis, to contribute on strengthening of Mexican Financial Market with corporate strategies for sustainable growth in the long term.
Social axis, to create an organizational culture of equality, participation and fair competition, in order to obtain a high performance, improving the quality of life of our employees and disseminate financial and capital market culture in Mexico.
Environmental Axis, to boost our stakeholders with market mechanisms and promoting investment vehicles, corporate and environmental responsibility, involving issuers and companies of BMV Group.
SUSTAINABILITY MODEL
SUSTAINABLE EQUITABLE
onomic Ec
SUSTAINABILITY E
n v l ir o ia n c m o en S tal
FEASIBLE
12 SUSTAINABILITY REPORT FINANCIAL RESULTS FINANCIAL RESULTS
The shares of the Mexican Stock Exchange, S.A.B de C.V. They are ordinary, nominative, without par value, Series A and listed on the Mexican Stock Exchange under the ticker BOLSA A. At December 31st 2014 there are 592,989,004 shares.
BMV Group revenues are according to the processes of the value chain, as it is: List, trading, post-trade, added value and information. The following chart shows the composition of group revenues according to the value chain processes:
OTHERS 3%
EQUITY TRADING 9% MANTAINCE FEES 19% EQUITY CLEARING 7%
DERIVATIVES TRADING (MEXDER) 4%
DERIVATIVES CLEARING (ASIGNA) 4% LISTING 4%
DATA SALES 7% SIF ICAP19%
VALMER 4%
CUSTODY (INDEVAL) 20%
The following graphs show the pro forma results * Group BMV.
INCOME
2,063 2,275 2,434
2012 2013 2014
Million of pesos * Including Indeval Consolidation
14 SUSTAINABILITY REPORT BMV GRUPO 2014
EXPENSES
1,446 1,164 1,267
2012 2013 2014
Million of pesos
OPERATING MARGIN
43.60% 44.30% 40.60%
2012 2013 2014
The following graphics show the results in terms of dividends paid and earnings per share of the BMV.
DIVIDENDS PAID
646 646
641
2012 2013 2014
Million of pesos
SUSTAINABILITY REPORT 15 EARNINGS PER SHARE
1.30 1.15
0.84
2012 2013 2014
The following chart shows how companies are listed on the Exchange, according to their economic sector. It denotes that sectors with the highest market capitalization are the sectors of frequent consumption products and Telecommunications.
DISTRIBUTION SECTOR MARKET VALUE
DECEMBER 2014
ENERGY 1.2%
MATERIALS 13.9%
TELECOM 21.0%
INDUSTRY 13.1%
GOODS AND SERVICES OF BASIC CONSUMPTION 6.5% FINANCE SERVICES 11.6%
HEALTH 1.0% FREQUENT CONSUMPTION PRODUCTS 31.7%
More information regarding the Operating Results can be find: http://www.bmv.com.mx/ Relación con inversionistas / Información financiera-
16 SUSTAINABILITY REPORT MAIN INITIATIVES IN THE FIELD OF SUSTAINABILITY BMV GRUPO 2014 MAIN INITIATIVES IN THE FIELD OF SUSTAINABILITY
ral ut e
N
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n
o
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MÉXICO2
Mexican Carbon Platform, MEXICO2, promote the development of environmental markets in the country, as the Carbon Market, which facilitates the exchange of certified emission reductions, internationally known as “carbon credits”. MEXICO2 has the institutional support of the BMV, the British Embassy in Mexico, the Secretariat of Environment and Natural Resources (SEMARNAT), the National Forestry Commission (CONAFOR), the National Institute of Ecology and Climate Change (INECC) and the United National Program for Environment Program (UNEP).
During 2014, MEXICO2 developed commercial strategies to boost the growth of the voluntary carbon market by the campaign “Carbon Neutral”, facilitating the meeting between companies that sell certified emission reductions and companies that want to neutralize or offset their carbon footprint through the purchase of these reductions.
The calculation of the carbon footprint within the corporations is not only an obligation, but also an opportunity to identify potential reductions of emissions with substantial economic benefits. Businesses also gain a competitive advantage if they decide to offset some of their carbon emissions, joining best practices worldwide.
In this context, together with SEMARNAT, workshops were conducted to companies on the National Register of Emissions, which demand the mandatory reporting of gases and greenhouse components to those companies that emit more than 25,000 tCO2e per year, including most of those listed in the BMV.
Similarly, and in partnership with international institutions such as the International Emissions Trading Association (IETA), the United Nations Framework Convention for Climate Change (UNFCCC) and the World Bank, several conferences were organized for companies and media related to corporate sustainability and carbon markets.
Along with the development of local carbon market, also MEXICO2supports the design of clean energy certificates. According to the statement by the Law on the Use of Renewable Energy and Energy Transition Financing and the General Climate Change Law published in 2012, Mexico has a goal of 35% of electricity generation through clean sources by 2024.
SUSTAINABILITY REPORT 18 However, non-fossil energy sources account for only 17% of the electricity consumed. Clean Energy Certificates, which will be active in 2018, will try to promote greater power generation from clean energy sources which, in most cases, refer to renewable energies. These certificates were included in Energy Reform as part of the strategy to meet these goals.
Companies that consume large amounts of energy must include in their portfolio a minimum percentage of consumption backed certificates that must be purchased on the market.
Last November, MEXICO2 made the first simulation of an auction of carbon credits in the country, which was attended by members of the Federal Government and public companies listed on the BMV.
The simulation tested a price formation mechanism for the eventual compensation of the carbon tax, the same that applies for fossil fuels from January 2014.
Finally, the Mexican Carbon Platform provides an information channel for companies to know firsthand the regulatory progress regarding carbon emissions and find a way to compensate, supporting projects that sell Mexican certified emission reductions with major environmental and social benefits.
19 SUSTAINABILITY REPORT BMV GRUPO 2014 IPC Sustentable On February 3rd , was published the sample of listed companies that conform the Sustainable Index during 2015. This index distinguishes committed companies evaluated in three pillars: Corporate Governance, Social Responsibility and Environment.
To join the Sustainable IPC, two external specialized ratings evaluate the performance of the firms in the three pillars already mentioned. These institutions are:
1. EIRIS ( Experts in Responsible Investment Solutions ), an UK organization with over 30 years of experience in the analysis of worldwide listed companies sustainability matters, and;
2. Universidad Anahuac del Sur through the Center of Corporate Governance Excellence, a leader in the art and partner with organizations such as OECD, World Bank, IFC, ICGN, among others.
To obtain the sample of companies that are part of the Sustainable IPC , they described more than 70 firms, choosing only those that exceeded the national rate average of the (joint) ranking of environment , social responsibility and corporate governance evaluations, and: also met the criteria of percent of floating shares, market value and minimum float required liquidity.
For the BMV Group EMISORA SERIE EMISORA SERIE to stay within the Sustainable AC * HERDEZ * IPC, represents an achievement AEROMEX * ICA * and one major ALFA A IENOVA * challenge. Is an ALSEA * KIMBER A indicator that shows us that AMX L KOF L the sustainability ASUR B LAB B i m p l e m e n t e d AXTEL CPO LALA B i n i t i a t i v e s during 2014 in AZTECA CPO MEXCHEM * terms of Corporate BIMBO A OHLMEX * Governance, Social BOLSA A OMA B Responsibility and Environment CEMEX CPO PE&OLES * were adequate. COMERCI UBC SANMEX B F u r t h e r m o r e, ELEKTRA * SORIANA B we agree to keep working on a FEMSA UBD SPORT S stronger strategy GENTERA * TLEVISA CPO of sustainability GFNORTE O VESTA * for the coming GMEXICO B VALMEX V years.
SUSTAINABILITY REPORT 20 Regarding the behavior of the CPI sustainable , it presents higher yields compared to the main index of the Stock Exchange , as well as international levels.
IPC VS. IPC SUSTENTABLE
2008 - 2014
IPC SUSTENTABLE: 180.05% IPC: 110.11%
300 250 200 150 100 50 Nov-14 Nov-13 Nov-08 Nov-09 Nov-12 May-11 Nov-10 Nov-11 May-09 May-12 May-14 May-13 May-10
OTHER INTERNATIONAL SUSTAINABILITY INDEXES VS. IPC SUSTENTABLE*
ISE (BM&BOVESPA): 74.42% DJ WORLD SUSTENTABILITY: 68.5% JSE SRI: 72.15% FTSE4GOOD GLOBAL: 85.76% IPC SUSTENTABLE: 150.99%
315 265 215 165 115 65 Nov-14 Nov-13 Nov-08 Nov-09 Nov-12 Nov-10 Nov-11
* Rendimientos de USD
21 SUSTAINABILITY REPORT RELATION WITH STAKEHOLDERS RELATION WITH STAKEHOLDERS
The BMV Group, through its Code of Ethics and Conduct (available at: www.bmv.com.mx) provides the following guiding principles to stakeholders or interest groups:
Customers
Providers
Shareholders
BMV Group employees
Government an Regulatory Entities
Society and Environment
23 REPORTE DE SUSTENTABILIDAD BMV GRUPO 2014
COMMUNICATION GOVERNMENT FORMAT BY AND ENVIRONMENT STAKEHOLDERS REGULATORY AND GROUP: CLIENTS SUPPLIERS INVESTORS COLLABORATORS FRAMEWORK SOCIETY
Investor Relations Area
Conference calls for quarter results
Monthly Informative Bulletin
Press Releases
CRM
Satisfaction surveys
Informative brochures
Anonymous Helpline
Phone line
Social Media
Web page
Intranet
Anual and Quarter Reports
Sustainability Report
SUSTAINABILITY REPORT 24 CUSTOMERS Quality management system Remaining committed with continuous innovation and improvement of products and services, the BMV Group has 3 companies certified with standards ISO:
BMV Group BMV Group BMV Group
NMX-I-20000-1-NYCE-2012 ISO 9001:2008 ISO 9001:2008 ISO/IEC20000-1:2011
2 Processes: Pricing Vectors 1 Process: Operative Control 2 Processes: routing orders and and Historical Differences Matrix under the supervision of the BMV Market Data. generation under the supervision of Direction of Capital Transactional the Direction of Valuation. Services.
4 Processes: intermediates audit, market supervising, market follow up and research in charge of the Direction of Markets Surveillance
3rdRecertification: December 2d Recertification: Certification: November 2014 2013 December 2014 and integration to the intermediates audit process.
Initial Certification (2004, 10 years) Initial Certification: (2008, 6 years) Initial Certification: 2014
With the promotion of a service-oriented organizational culture with a high level of satisfaction, for internal and external customers, we´ll have the extension of Management Systems to other critical processes for the organization in the period 2015 - 2016:
Mexican Stock: Quality Assurance Process (Transaction Services Division).
Valmer: Risk Process Bursatec: 1 Indeval Service and 1 Exchange Service (Promotion and Listed Companies Division).
Additionally, there are plans to upgrade ISO 9001 at the end of 2015; where the Quality Systems of Valmer and BMV will be aligned into the new requirements; these are scheduled in the period 2016-2017.
25 SUSTAINABILITY REPORT BMV GRUPO 2014 Client satisfaction INDEVAL Perception Survey Services For the fifth consecutive year, Indeval launched its annual survey of quality service perception, in which quality of services provided is evaluated, the systems availability and the attention of the operating areas.
Each year there have been efforts to improve the areas of opportunity detected in previous surveys, thus, have been implemented new mechanisms to improve services and reaching other market niches.
For results of the previous survey, consult them on www.indeval.com.mx > Information Center >Polls
Service Level Measurement Indeval 2014 Indeval showed service level availability of 99.90 % accumulative, exceeding the target set this year of 99.84 %.
The services with opportunity areas were: Services Dali Portal Services and Value-added Services derived from some failures on communications network components and instances of Portal affecting its availability, as well as the Securities Settlement System (SLV) and Financial Protocol of Indeval.
Sustainable Group of Listed Companies As part of the strategy to promote sustainability among listed companies at BMV and addressing concerns, the BMV Group continued working during 2014 with the Sustainability Group, whose main objective is to share experiences, seek cooperation and promote corporate initiatives in terms of sustainability.
The group met in March and August to discuss issues related to the Platform Mexican Carbon, Carbon Disclosure Project and methodology of Sustainable Index. Similarly, by the determination of listed companies that are part of the group during the 5th Forum of listed companies held in Cancun, where it was included a panel with sustainability issues with participants as Lenora Suki, Senior Product Strategist of Bloomberg; Derek Bingham, vice president of Goldman Sachs and Luis Farias, President of CESPEDES.
SUSTAINABILITY REPORT 26 SUPPLIERS The BMV Group is committed to demand and offer to its suppliers an honest, fair and equitable treatment in the negotiations for the acquisition of goods and services in the best interest for the group. It fosters fair competition, equitable selection processes and transparency, based on considerations of price, quality, profitability and service.
Thus, the BMV Group developed the Procurement Policy and its procedure, which are published for consultation on the intranet. This policy aims to manage the procurement of goods and services for companies of BMV Group and ease the administration of suppliers, purchase orders, quotes, order control, contract management, authorizations, receptions. This contributes also into accounting and financial management while facilitating consultation, control and analysis by authorized users.
With the intention to require and provide honest and fair treatment, we respect agreements and commitments established in contracts to solve any dispute or controversy. For this reason, an anonymous denunciation line is open to all providers of BMV Group, it means a direct and effective channel in order to receive comments or complaints and thus take the actions relevant actions.
SHAREHOLDERS
One of the main commitments of the Mexican Stock Exchange with its shareholders is taking solid business decisions which are in line with best interests of the Group and not will be influenced by personal interests, seeking always to protect and increase the value of their investment.
In this sense, it is intended to meet the expectations of profitability of the company’s shareholders on sustained basis on the medium and long term, by increasing and diversifying income and proper management of resources.
Inside the meetings of the Board of Directors the Group must inform the principal strategic projects within the companies of BMV Group, including human capital issues and sustainability actions.
The Mexican Stock Exchange is committed to providing shareholders in a timely manner and in accordance with the regulatory framework, all necessary information about the business, so they can take decisions with reliable and secure bases.
27 SUSTAINABILITY REPORT BMV GRUPO 2014
Our management is responsible of the audited consolidated financial statements and the establishment and maintenance of an internal control system. The goal is to give shareholders, the financial community and other interested parties, assurance that transactions are made in accordance with the guidelines of the administration, that the files and financial records are reliable for preparing the audited consolidated financial statements, that the assets are reflected in corresponding financial values and that the assets are protected against loss or unauthorized use.
To accomplish its responsibility on the integrity of the financial information, management maintains an internal monitoring system. This system is based on an organizational structure that delegates responsibilities and ensures the selection and training of personnel, including appropriate communication channels to disseminate policies and messages to all staff.
The internal control system is backed with constant internal audits, which reports its findings to management, throughout the year. Furthermore, we have modern and efficient computer systems, allowing updated information in real time and maintaining reliable databases; these systems also facilitate the efficient preparation of financial reports.
It is worth mentioning that thanks to this control system have been avoided significant errors and irregularities, which are detected promptly.
Other communication mechanism for shareholders and general public, are the Shareholders Assemblies, both ordinary and extraordinary. Through of these, shareholders can express their opinions and concerns. It is noted that during 2014, the Company held two General Assemblies Ordinary on 29 April and December 1st.; and a General Assembly Extraordinary also held on April 29, 2014.
The 2014 financial guideline was not reached because the goodwill and intangible assests GUIDELINE 2015 impairment.
EBITDA: Guideline between EBITDA margin: between 48% - 49% 46.5% and 47.5%. Result: 43% NET INCOME: Guideline Net Income: between 800 and 820 million pesos between 760 and 775 million pesos. Result: 499 million pesos.
SUSTAINABILITY REPORT 28 BMV GROUP EMPLOYEES The “Code of Ethics and Conduct Group BMV” will frame the principles that keep the group with his collaborators, of which we can highlight:
Recognize and respect the dignity and individuality of people.
Behave respectfully with all collaborators of BMV Group.
Any form of discrimination is not tolerated, either for reasons of gender, marital status, age, religion, race, physical appearance, differences of opinion, political opinion, social status, language, nationality, sexual orientation, pregnancy or physical disability.
It is not tolerated and prohibits gender-based violence, which must be immediately reported through the appropriate circles.
It is not tolerated, and prohibits sexual harassment, whichmust be immediately denounced by the appropriate means.
All employees of the BMV Group should act justly and equity, protecting the common good of the other partners and safeguarding the interests of the group.
The BMV Group, is committed to the goals of companies that make up the group and seeks to act diligently and responsibly, providing talent, knowledge and experience, always making the best effort in the development of the functions and activities.
The BMV Group recognizes that its most important assets are its collaborators, why respects and values diversity and is committed to generating a healthy and safe environment in which they can develop both personally and professionally.
BMV Group respect the privacy of its employees, distinguishing personal issues and the labor matters, with the understanding that the work places and instruments provided by the companies of the Group are owned by these, as well as jobs and information produced by its employees.
BMV Group recognize the importance of information and the value to communicate and protect it, thus in this way their employees are involved in projects and objectives aimed achieving the mission and vision of the group. That is why it promotes communication, respecting the participation and contribution each of its employees make.
29 SUSTAINABILITY REPORT BMV GRUPO 2014
To ensure the safety of all our employees, the BMV Group has a Civil Protection Manual, which sets procedures to follow in case of fire, evacuation, earthquake and terrorism. This manual is updated on the intranet of the group. Additionally, there are 89 leaders of emergencies located on all floors of the BMV building (equivalent to 14 % of employees) that are responsible for guiding and help the entire staff of BMV Group in case of any eventuality. Through the intranet is disclosed to all employees, who are and in what floor they are. Note that the last reported case of accident within the premises of the Securities Center was in 2011.
2014
To strengthen security within the BMV, we have the identification badges´ policy by all staff of the BMV Group; also a system of private protection has maintained surveillance cameras throughout the building.
Handling of confidential information and insider trading The information management is an important factor within the group, which it is why its supervision should be responsible, safe and attached to the regulatory framework.
The Safety Policy Manual of BMV Group defines the concepts and treatments depending on the type of information:
Confidential Information: that is information which must be provided with the biggest security controls to ensure its integrity, confidentiality and availability. Access to this information should be highly restricted and based on a “need to know”. The dissemination of this information requires the authorization of the responsible for it.
Insider information: knowledge of acts, facts or events able to influence the price of the underlying assets as such information has not been made public knowledge. The Securities Market Law in articles 362, 363 and 364, mentions offenses and prohibitions of insider information use.
SUSTAINABILITY REPORT 30 Misuse of personal data, confidential and privileged information, not only can bring penalties for missing the provisions in the Code of Ethics, in the Conduct and Security Policy Manual of BMV Group and in the related policies approved by the Board of Directors of each companies of the Group, but also criminal matters sanctions.
To strengthen the management of information, an Information Security Group was formed with members of each of the Divisions of the BMV Group with the Information Safety Officer as a leader.
This group reviews and validates that people, processes and technology have appropriate security measures and controls that ensure the reasonability, confidentiality, integrity, availability and non-repudiation of the information.
Anti-corruption Policy The Code of Ethics and Conduct of the BMV Group, states that it is strictly forbidden to do or allow, directly or indirectly, improper payments or bribe to any third party or authority in an effort to influence any decision that might help companies of the group obtain or retain business or any improper advantage, as well as to participate in activities that could be interpreted as extortion or corruption.
Employees of BMV Group, before giving or receiving any gift, entertainment or anything of value from any authority, supplier or customer, they must meet the guidelines related to gifts under the Ethics and Conduct Code, as these acts could come to mean implicitly or explicitly bribes or corruption.
According to the Code of Corporate Best Practices applicable to the Mexican Stock Exchange, as a public company since 2009, we implemented an anonymous reporting mechanism that helps the Board of Directos duty.
Thus, employees of the BMV Group are required to report suspected violations of the Ethics and Conduct Code, or any action that could jeopardize the assets of the group, and the safety and health of its employees. This mechanism is supervised by one of the governing bodies of the BMV Group.
Consequences of non compliance The case of noncompliance with the provisions of Ethics and Conduct Code, it is subject to the disciplinary proceedings conducted by the Internal Group of Ethics and Conduct in the Group BMV. In the case of a process involving a General Director or Deputy Director, the procedure must be reported to the Corporate Governance Committee of the Mexican Stock Exchange. The offender shall be liable to a penalty, which may go from a private reprimand to termination or rescission of the work contract, without prejudice to any further legal action that could proceed under the current regulatory framework.
31 SUSTAINABILITY REPORT BMV GRUPO 2014 Anonymous Helpline According to the Code of Corporate Best Practices, since 2009 it was implemented an anonymous reporting mechanism, which has treated 100% of the reports received. Note that at the moment has not been reported any case of discrimination in the BMV Group.
The address of the website of the anonymous helpline is: https://bmv.alertline.com/gcs/welcome
ANONYMOUS HELPLINE
PHONE NUMBER: ACCESS CODE: 01-800-288-2872 888-703-0291 365 days, 24 hours
Compensation and benefits Human capital is the most important asset for the BMV Group, therefore it seeks to provide better working conditions that allow preserving a right balance between professional and personal life. For this set a working day of 40 hours distributed from Monday to Friday, taking an hour to take food, in line with a general schedule from 8:30 to 17:30. Hours of work may be modified according to the needs of the company or the nature of work, they are within the framework of the Federal Labor Law and the Internal rules of work.
Among the benefits are: Insurance of major medical expenses. Life insurance and personal accident. Bonus. Variable Bonus/results. Vacation payments. Savings Fund Food stamps Profit sharing Retirement plans
SUSTAINABILITY REPORT 32 Additional benefits: Internal dining room Discounts in kindergartens and schools Discounts with gyms Discounts and special rates at restaurants, hotels, parks, entertainment, arts and department stores Integration activities such as: domino tournaments, bowling, participation in races of 5 and 10 kilometers, among others Social Thursday, where the integration or promoting employees of all companies that make up the BMV Group “Program with Cause” with preferential rates at medical checkups applied into the BMV facilities and the education in eating habits and recommendations for safeguarding health for employees and their families.
RESULTS OF PERCENTAGE “PROGRAM WITH CAUSE” OF PARTICIPATION
Medical Check ups 55.1%
Human Capital , with provider data .
Organizational diagnosis To find incentives that encourage employees of BMV Group to achieve business results above expected, BMV Group applies the diagnosis of Organizational Effectiveness (DEO®), a specialized analysis that interprets the relevant factors impacting staff commitment.
The 2014 result was very hopeful, as it was able to increase significantly the level of commitment of the employees of the group.
COMMITMENT INDEX FOR BMV GROUP
59.2 46.6 54.7
2012 2013 2014
Source: Organizational Diagnosis
33 SUSTAINABILITY REPORT BMV GRUPO 2014
GOAL 2014: GOAL 2015:
to overcome 2013 to overcome 2014 results results
Performance evaluation and career plan
Performance evaluation through the Balanced Scorecard tool, has become an important mechanism for the BMV Group as means of feedback that can recognize the employees that meet established goals and contributed to the achievement of the strategic objectives of the group. During 2014, 94 % of staff was assessed through this methodology.
Training In 2014 were delivered on average 37.4 hours of training per employee, representing a 13% higher compared to 2013. This was in order for employees to acquire the technical and management skills to ensure the success of corporate goals.
AVERAGE TRAINING HOURS BY EMPLOYEE
37.4 30 33
2012 2013 2014
Source: Human Capital
Leadership Diploma This diploma is aimed at developing leadership skills in BMV Group managers, to generate better results on their work groups. During 2014 there were 120 hours of training to 51 executives. This year began the Managerial leadership program, where 18 hours of training were given to 17 Managers.
SUSTAINABILITY REPORT 34 INTRODUCTORY COURSE TO THE STOCK MARKET
72
44 36
2012 2013 2014
Source. Human Capital *Number of participants
AVERAGE TRAINING COST PER EMPLOYEE
11,956 8,106 7,031
2012 2013 2014
Source. Human Capital *Pesos
YEARLY NUMBER OF PARTICIPANTS IN TRAINING
423 351 287
2012 2013 2014
Source: Human Capital
ANNUAL ROTATION RATE*
11.03 9.99 10.38
2012 2013 2014
Source: Organizational Diagnosis *Porcentage
35 SUSTAINABILITY REPORT BMV GRUPO 2014
PERCENTAGE OF VACANCIES COVERED BY THE PROGRAM “INTERNAL JOB POSTING”
67 40 36
2012 2013 2014
Source: Human Capital
NUMBER OF COLLABORATORS BMV GROUP
602 633 641
2012 2013 2014
Source: Human Capital
COLLABORATORS OF BMV GROUP
PERCENTAGE OF THE POPULATION WITH TEMPORARY ANALYSTS IN FOR PROJECT YEAR CONTRACTS TRAINING
2012 2.7% 6 9
2013 1.6% 10 0
2014 3.1% 10 10
COLLABORATORS OF BMV GROUP BY GENDER
YEAR WOMEN MEN
2012 42% 58%
2013 42% 58%
2014 42% 58%
Source: Human Capital
SUSTAINABILITY REPORT 36 EXECUTIVE LEVEL MEN WOMAN
2012 2013 2014 2012 2013 2014
CEO 1 1 1 0 0 0
Deputy General Director 5 5 4 0 0 0
General Director 1 1 1 1 1 1
Director 23 21 22 3 3 3 Coordinator 4 6 7 1 0 0
Comptroller 1 1 1 0 0 1
Sub-Director 33 31 36 11 12 15
Manager 50 55 60 31 37 43
Ttotal 118 86 132 47 53 63
Source: Human Capital
AGE RANGE IN COLLEAGUES BMV GROUP
271 186 110 71
Menor 30 De 30 a 39 De 40 a 49 Más de 50
Source: Human Capital
37 SUSTAINABILITY REPORT BMV GRUPO 2014 GOVERNMENT AND REGULATORY FRAMEWORK The BMV Group companies are active within a regulated atmosphere, they are committed to the awareness and the promotion of the adherence and compliance of the regulatory framework. Also is promoted their participation in the development and improvement of the relevant regulatory framework in accordance with the plans and objectives of BMV Group.
Regulatory framework governing the operation of the BMV Group and the securities market Securities Market Act. Investment Funds Act. Single Circular for Issuers. Single Circuar for Brokerage Companies. Sibgle Circular for Investment Funds. Provisions concerning the International Quotation System. Internal Regulations and Operating Manual of the BMV. Code of Corporate Best Practices. Code of Ethics of the Mexican Securities Community.
Debt Market for Corporates The securities market is a source of financing that offers greater advantages over traditional financing options, related to the release of guarantees, access to amounts, rates and terms that meet the needs of companies, among others.
The Mexican Stock Exchange promotes and participates in the High Impact Program of Entrepreneurship with the National Entrepreneur Institute (INADEM), created for the midsize companies that adopt best practices on Corporate Governance, to access funding in the Securities Market that support its growth, initially in the debt market.
The market brings a number of benefits, among them:
Increase the value of the company. Strengthen the financial structure. Provides financial recognition and quality standards. Financial flexibility and sources of funding. Improving the image and international projection
These benefits increase the competitiveness and professionalization of the company, becoming a success story in Securities Market
The details to apply to this program are in the website: https://www.inadem.gob.mx/
SUSTAINABILITY REPORT 38 Questionnaire about adherence to international best practices in corporate governance As part of the operational processes of the BMV Group, it continues applying annually the questionnaire about adherence to international best practices in corporate governance. This very useful tool allows listed companies know their adherence level at Corporate Best Practice Code.
The report of the results of 2014 is public on the website: https://www.bmv. com.mx on June 2015, while the results of 2013 were published in June 2014.
The questionnaire results of corporate governance best practices show that BMV Group held high standards in corporate governance.
PERCENTAGE OF ATTACHMENT OF THE BMV
90 90 90
2011 2012 2013
Source : 2013 Survey of adherence to international best practices in Corporate Governance
Notably, the BMV Group, in the last three years has not received any type of subsidy or support from the Federal Government.
Distinctive CDMX to companies implementing labor policies of paternity
The Ministry of Labor and Employment Promotion and the Mexican StockExchange presented the results of the survey on corporate policies of paternity based on responses from 32 companies. The Chairman of the Mexican Stock Exchange stressed the significance of reconciling the family life with work.
The questionnaire was sent to 154 companies located in CDMX and listed on the Stock Exchange, of which 32 answer the survey, voluntarily and anonymously.
Companies applying paternity policies among its workers will receive a CDMX recognition as Chief of Government, Miguel Angel Mancera said.
Together, the 32 companies that answered the questionnaire have a workforce of 232,000 people: 86,000 women and 146,000 men.
39 SUSTAINABILITY REPORT BMV GRUPO 2014 SOCIETY AND ENVIRONMENT Society The BMV Group seeks to be an active player in society, with the promotion of financial and securities market education for the society in general.
This work is accomplished through the presence in social networks, links with universities, the promotion of visits at the BMV facilities, the “Award of Financial Markets”, the promotion of financial literacy and other programs.
Within the BMV Group, is encouraged hiring local employees and suppliers, with the intention of generating greater development in the communities in which we have our activities. Similarly, the policy is to not hiring minors to perform any type of work, whether paid or not.
Education In 2002, the Mexican stock exchange founded BMV Education, specializing training for securities issues. At present, the academic offer is mainly preparation courses for certifications in different institutions (like AMIB, AFORES, MEXDER).
Also are available training programs in finance (basic and high specialization). Tailor-made courses for public and private companies, institutions of credit, insurance firms, brokerage firms, banks, investment funds, distributors of mutual funds, Afores, Siefores and Listed companies, among others.
BMV in 2014 decided to expand its content for every public with a broader approach to business and financial environment, including the training of entrepreneurs and executives in all areas of knowledge on business.
Thus, in July 2014 BMV Education Business School reaches more than 16,000 graduates.
BUSINESS SCHOOL
YEAR HOURS PARTICIPANTS
2010 2,971 1,178
2011 3,130 1,838
2012 2,618 2,868
2013 2,548 1,499
2014 2,343 1,412
source: Human Capital
SUSTAINABILITY REPORT 40 Week of the School of Accounting and Administration at UNAM
We attended for 3 days: April 7, 8 and 9, giving some lectures about the nature of the securities market and the opportunities it presents.
Entrepreneur Week
From 11 to August 15 we went to the Banamex Center in order to give some talks to support Mexican entrepreneurs interested.
Financial Education Expo
On November 22 and 23, BMV Group participated in conjunction with Sibolsa and Promotion Division.
Program for Development of Counselors
Through the program “Development of Counselors”, the BMV Group gives impetus to the implementation of corporate governance, through the dissemination about different aspects of the Corporate Best Practices Code.
41 SUSTAINABILITY REPORT BMV GRUPO 2014
10 generations have been participated in such program.
UNAM Initiative
The BMV Group has, as one of its priority objectives, to increase financial culture in Mexico. We want to contribute to the training of university students that in the very near future, will able to participate in making major decisions in the country.
The BMV Business School boasts several of the best talent-training experts in both Finance and Business; therefore, it is in a position to share all this expertise with youth from universities in all states of Mexico.
Since August 2014, the BMV Business School joined to Business Courses program of the School of Accounting and Administration, whereby the material “securities markets” teaching to students of FCA careers in our facilities.
The work on the training of young people means we increase chances of success of their future employers and therefore of the economy in general, in addition to all the personal benefits involved they can get in the exercise of their profession. This makes the process one obvious win-win relationship. We want the BMV being an entity close to society, we want to be the financing option that current and future managers know and see as possible and desirable.
SUSTAINABILITY REPORT 42 MEXICAN STOCK EXCHANGE LAUNCHES APP FOR ANDROID As part of the digital strategy promoted by BMV Group, whose purpose is to bring closer the stock market to the public, taking advantage of information technology, during 2013 the Mexican Stock App was launched on Apple devices and in 2014 launched the Android App.
With the information in this product, you can consult the main stock market indicators, BMV Indexes, major market indexes in the US, the behavior of the commodities, MexDer, track exchange rates, see macroeconomic indicators, stocks performance, etc.
The information that is publicly accessible and free of charge is provided with 20 minutes delay, while SiBolsa customers can access to this information in real time from anywhere in the world.
43 SUSTAINABILITY REPORT BMV GRUPO 2014 AWARD OF FINANCIAL MARKETS The Financial Markets Award is an initiative of BMV Group, that aims to provide to young people, professionals and researchers, the opportunity to develop ideas and a proposal to strengthen research, knowledge, creativity, etc. for the development of markets.
For the eighth time, companies like BMV, MexDer and Asigna, joined their efforts to reward the innovative work that propose solutions, theoretical or practices, applicable to the Mexican market.
For this edition 20 works in total competed, representing the following institutions: EGADE - Business School - ITESM Institute, Economic and Business Research, IPN, ITAM, SKEMA – Business School, UAEM-Temascaltepec, UAdeC, UAM, UNAM, Anahuac University, University of Limerick - Ireland, UPAEP and UPFIM.
GOAL 2014: For the 2014 edition the promotion and call of the contest were redesigned reaching more participants and more innovative proposals.
This new approach contemplated a more dynamic dissemination and in digital media to reach younger audiences and a new contest category for simulations and apps in order to include more types of participants with creative proposals.
SUSTAINABILITY REPORT 44 This year, the Jury decided to declare a tie at the First Place in the category of printed works, accumulating the prize for distribute to the winning participants.
The winners were:
Yahir Aurelio Lopez Chuken, a graduate of the EGADE Business School -ITESM, with the thesis: “A measure of financial stress to Mexico, its relationship to economic activity and mechanisms for stress transmission”. 1st place winner.
Ali Joshua Limón Mendoza, graduated from the National Autonomous University from Mexico. Faculty of Science with a thesis entitled “ Stock Market Microstructure in Mexico: analysis from the intrinsic time and directional changes”. 1st Place winner.
Fides Niño Vega, graduated from SKEMA Business School, with the thesis MA: “ Cost - effective hedge for shrimp farmed in Northern Mexico.”3rd place winner
45 SUSTAINABILITY REPORT BMV GRUPO 2014 STUDENT ENTREPRENEUR AWARD The BMV Group, with the aim to recognize and encourage young entrepreneurs of Mexico, is proud to remain as a sponsor of the “Student Entrepreneur Award”, which represents a window were young people demonstrate their entrepreneurial skills. On Monday February 16, 2015, took place at the facilities of the BMV, the endof the fifth edition of the Prize.
The finalists presented their companies before a Jury made up of executives of the BMV Group, issuers, serial entrepreneurs, who had the task to evaluate 31 projects and to select the top three, which will represent Mexico in the final to be held in Washington.
José Oriol Bosch, CEO of BMV Group, presented the winner of the first place, Alejandro Moreno, a prize of $ 275 thousand pesos for his project “Tutor Online” as well as a valuable E-Myth program for professional mentoring.
The second place went to Jose Antonio Lopez, for “Pepehuates” company dedicated to producing peanut and cactus based snacks in Chihuahua, which received a prize of $ 75,000 pesos. The third place went to Moisés Medina with his company MNK MEX, producer no calorie sweetener. The prize was $25,000 pesos.
This event (which, globally, has 16 years of existence) has the support of major sponsors in addition to the BMV Group.
SUSTAINABILITY REPORT 46 BMV IN THE NETWORKS During 2014, the power and influence that social networks have demonstrated to disseminate the contents and information of companies, in the case of BMV, our content were not unrelated to this trend.
In January 2014, the “fan page” Mexican Stock Exchange launched chasing very specific objectives include bringing the BMV to society, position it as the main reference in Mexico about securities information. Finally, impacting positively our audience.
Our audience has an age range between 18 and 45 years old, consists 38% of women and 61% men, whose profiles are university, potential investors, financiers, academics and businessmen.
By the end of 2014 we reached 5,858 likes, and had conducted 1,519 posts an average engagement rate of 10.6%, which allowed us to have a scope potential of more than 460,000 people.
47 SUSTAINABILITY REPORT BMV GRUPO 2014
Twitter During 2014, we continued to differentiate the content between our 2 twitter accounts, in @GrupoBMV we reinforced the educational content by increasing the number of infographic posts that allowed the contents to be more understandable to the audience to whom they are directed. By the end of 2014, the account had published 8,341 tweets, 2,506 more than in 2013, reaching 18,696 followers, which represented an increase of 60.37%, compared to the end of 2013.
Moreover, the account @ BMVMercados, maintained its technical and specialized language according to the audience that follows us, and by the end of 2014 the account had published 8,472 tweets, 2,093 more than the previous year, reaching 56,465 followers, representing an increase of 46.32%, compared to the end of 2013.
Youtube In addition, the BMV Group has a YouTube corporate account since 2012, thru which the videos of the opening bell ceremonies of new IPOs, interviews and other important events in the BMV Group are broadcasted. This channel currently has 93 videos, 318 subscribers, and a total of 25,102 video views.
SUSTAINABILITY REPORT 48 Hangouts During 2014 we implemented new “Hangouts”, that are live internet broadcastings, with a recognized personal finance specialist and author, reaching 592 views in Youtube.
Linking Colleges to the Exchange During 2014, several conferences were given in colleges and universities in Mexico City and within the republic, which aimed to explain to the students: What is the Exchange and how to invest. Thru these conferences we directly impacted up to 2,400 college students.
49 SUSTAINABILITY REPORT BMV GRUPO 2014 THE EXCHANGE EXPERIENCE The program “The Exchange Experience” remains as one of our main means to bring the stock market closer to the students and the general public. In this guided visits, the youth has access to the market, the data, and how to participate. It includes a guided tour to our facilities, pictures in the trading floor and the opportunity to interact with all kind of experts from BMV Group, discussing topics such as brokerage and capital markets finance through BMV Group, the applicable regulation and other interesting themes.
The information about the Exchange Experience program, and how to participate, is available on our website: http://bmv.com.mx/Inicio/Acercadela BMV/ExperienciaBolsa.
In 2014, more than 8,000 from 138 universities public and private from all over the country attended the program, highlighting that at least 80% of them were from universities outside Mexico City. Currently the student data base reaches up to 26,716 students, which represents an accumulated increase of 44% compared to 2013, this shows an increasing interest in the Mexican youth to know more about the stock market. Young people subscribe to this data base to receive market news and information about the stock market and other financial courses. It is important to notice, that we had a significant decrease in the number of visitants in the guided tours due to a halt in the visits from January to March, for security reasons.
VISITORS TO THE EXCHANGE
17,500 18,000 17,100
8,221
2011 2012 2013 2014*
SOURCE: Public Relations *The decrease in the number of visitors during 2014 was because the cancelation of visits due to the security of the building.
SUSTAINABILITY REPORT 50 Donations During 2014, BMV Group conducted a series of donations which amounted $1,654,530 pesos, focused on supporting nonprofit organizations and vulnerable groups.
Beneficiary Organizations:
The American School Foundation Fundación Desarrollo Humano Sustentable Asociación de Amigos del Museo de Arte Popular Antiguo Colegio de San Ildefonso Casa de la Amistad Fundación de Estudios Financieros Academia de Música Charity Day The initiative called “Charity Day” conducted by SIF ICAP, remains a tangible evidence of BMV Group’s social commitment. This initiative consists in donate a 100% of SIF ICAP’s revenues of one day of trading. Traditionally this happens in December and it is aimed to support social beneficence organizations.
In 2014, the amount collected was of $495,000 pesos in benefit of the following organizations:
Fundación Quinta Carmelita IAP. Voluntarias Vicentinas Albergue La Esperanza IAP. Casa Hogar Alegria IAP. Juventud Luz Y Esperanza IAP. Fundación Infantil Ronald Mc Donald AC. Asociación Cultural Internacional AC. Afectividad Y Sexualidad AC. Stimulo Centro De Estimulacion Y Desarrollo AC. Fundación Mexicana Del Riñon AC. Casa De La Amistad Para Niños con Cáncer IAP.
To know more about this initiative we encourage you to visit our web site: http://www.sif.com.mx/diacaridad.html
51 SUSTAINABILITY REPORT BMV GRUPO 2014 CULTURAL PROMOTION PROGRAM IN BMV GROUP BMV Group’s cultural promotion program has consolidated as an important cultural forum to renowned artists as well as young promises of the international plastic arts scene.
During 2014, we reached 8 art expositions within the premises of the Exchange, awakening the interest of art appreciation among our collaborators and our visits.
ARTIST EXPOSITION
Astrid Sommer Color Index Cristina Kahlo La mirada del viajero Fernando Tamés Territorios y Expansión Sabrina Villaseñor Interpretación Laura Figueroa Aires de Bronce Guillermo Kahlo Retratos Manuel Salinas Abstracto Estricto Gabriela Sodi Architectural Me
Environment BMV Group, as a financial services company, recognizes that the main impacts to the environment concentrate in the consumption of water, energy and paper. In the Exchange the following results were registered:
Water ANNUAL WATER CONSUMPTION*
16,649 15,743 16,178
2012 2013 2014
Source: Security and Maintenance *Cubic Meters
Our goal in water consumption is +/- 5% from 2013.
SUSTAINABILITY REPORT 52 Energy
INVESTMENT IN SAVING LIGHTS
2012 $85,000 2013 $137,000 2014 $92,000
ANNUAL ENERGY CONSUMPTION*
5,440 4,795 4,859
2012 2013 2014
Source: Security and Maintenance *Mega Watss - Hour
Our goal in energy consumption is +/- 5% from 2013.
Paper
As shown in the following data, we had a very light increase in printed paper use comparing to 2013, but a significant reduction of 11% compared to 2012.
COST OF PAPER CONSUMPTION*
170,207 142,222 151,451
2012 2013 2014
Source: Purchasing Department *Pesos
Our goal in paper consumption is +/- 5% from 2013.
53 SUSTAINABILITY REPORT BMV GRUPO 2014
It is important to notice, that BMV Group has not been the recipient of any fines for violations of environmental provisions of any kind. Emissions by use of transportation To calculate the emissions of CO2 due to the use of private transportations to the office, we take as a base the average commute of our collaborators, and with intern information we estimate that about 430 vehicles are used.
With this number and as the result of an internal survey to obtain the commute distance, we obtained an emission estimate for 2014 of 541 metric tons of CO2.
YEAR ENERGY CAR USE TOTAL
2012 1,904 440 2,344 2013 1,678 508 2,186 2014 1,700 541 2,241
Rides Searching to reduce the CO2 emissions due to the use of vehicles, and to offer alternatives to improve the life quality of our employees and to strengthen the bonds and trust among us, BMV Group launched in 2013 the program “Rides”. In this system our collaborators organize among themselves to share their vehicle with workmates to commute. Here we present accumulated figures from June 2013 to December 2014. It is important to mention that collaborator with the highest number of given “rides” are granted with an award that consist in gasoline coupons equivalent to a month of the minimal wage.
SUSTAINABILITY REPORT 54 Neutral Carbon Event Committed to mitigate the impact to the environment that we generate, in 2014 we neutralized the corresponding emission to the events occurred within our premises. In total, we acquire 500 carbon bonds listed in the Mexican Platform of Carbon, Mexico2, that equivalent to the 62% of the total emissions generated from those events.
Sustainable exchanges initiative and world pact Recently, the BMV Group has managed to take decisive steps on sustainability; example of this is the recent adhesion to the Sustainable Stock Exchanges and the UN Global Pact, as well as the instrumentation of the program to neutralize CO2 emissions of all group corporate events.
Adherence to Sustainable Stock Exchanges shows the commitment of promoting responsible investment and the correct disclosure of information in terms of sustainability. It is a learning platform to explore how the stock markets can work together with investors, regulators and companies to enhance corporate transparency and accountability on environmental and social issues such as corporate governance (ESG by its acronym in English), with the aim of encourage responsible and long-term investment.
On the other hand, the Global Pact of the United Nations is a platform for the development, implementation and opening to the policies and practices of corporate social responsibility. Launched in 2000, it is the largest initiative of corporate responsibility in the world, with more than 12,000 signatories in more than 150 countries and local networks in more than 90 countries. With adherence to the UN Global Pact, the BMV Group seeks to align its sustainability strategy with 10 universally accepted principles, including aspects of human rights, labor standards, and the applicable environment and Anti-Corruption Policy.
55 SUSTAINABILITY REPORT BMV GRUPO 2014
The 10 principles of the Global Pact:
Principle 1 Businesses should support and respect the protection of fundamental human rights recognized internationally, within their sphere of influence.
Principle 2 Businesses should make sure that their companies are not complicit in the violation of human rights.
Principle 3 Businesses should uphold the freedom of association and the effective recognition of the right to collective negotiation.
Principle 4 Businesses should uphold the elimination of all forms of forced or compulsory labor.
Principle 5 Businesses should uphold the effective abolition of child labor.
Principle 6 Businesses should uphold the elimination of practices of discrimination in employment and occupation.
Principle 7 Businesses should support a precautionary approach to environmental challenges.
Principle 8 Businesses should undertake initiatives to promote greater environmental responsibility.
Principle 9 Businesses should encourage the development and diffusion of friendly technologies with the environment.
Principle 10 Businesses should work against corruption in all its forms, including extortion and bribery. Battery up In Mexico it is estimated that 10 alkaline batteries are used per capita per year, considering a country of 110 million people, the management of discarded batteries is a very important factor in caring for the environment and the public health.
According to studies, each alkaline battery can pollute up to 100,000 liters of water and cause serious health problems, such as cancer and affect the central nervous system, among other ills. That is why the BMV Group, supporting sustainable actions, has installed two batteries deposit at the building entrances. These batteries are later collected and placed in containers to be transported to a specialized recycling plant.
SUSTAINABILITY REPORT 56 GRI CONTENT INDEX COMPREHENSIVE OPTION BMV GRUPO 2014
Indicator Description Page Basic Contents
Analisys and Strategy
Statement of the main responsible of the organization about the importance of the G4-1 4 sustainability for the organization and its strategy.
G4-2 Description of the main efects, risks and oportunities en matter of sustainability 4-5
Organizations Profile
G4-3 Name of the Organization 7
G4-4 Most importante brands, products and services of the organization 7
G4-5 Headquarters of the organization 7
G4-6 Countries were the organization operates 7 G4-7 Nature of the property regime and legal form 7-8
G4-8 Markets that your organization serves 7
G4-9 Size of the organization ( Number of employees, Number of operations, etc) 14-16
G4-10 Employees 37
G4-13 Meaningful changes in the size, structure, property and supply chain 9
Participation in External Iniciatives
G4-14 How the organization manages, the caution principle 30
Principles and other external iniciatives of economic, ecologic and G4-15 55-56 social matter of the organization Organizations and asociations of national or international relevance in wich G4-16 8 the organization participates
Material and coverage aspects
G4-17 List of the entities in the consolidated financial statements and other relevant documents 7
Organization´s process to stablish the content of the memoirs and coverage G4-18 3 of each aspect List of the material aspects identified during the process of the definition G4-19 3 of the memoirs G4-20 Coverage in the organization of each material aspect 52-54
SUSTAINABILITY REPORT 58 Interest Groups Participation
G4-24 Interest groups linked to the organization 23 G4-25 Criteria to select the interest groups of work 24 G4-26 Description of the approach to the participation of the interest groups 24 "Key issues and problems that have arisen from the participation of G4-27 26-28 stakeholders and description of the assessment by the organization"
Memories Profile
G4-28 Period of the memoirs 3 G4-29 Date of the last memoirs 3 G4-30 Presentation cycle for the memoirs 3 "Point of contact to resolve any doubts regarding G4-31 3 the memoirs contents." G4-32 GRI index indicating essential or comprehensive option 58
Governance
"Governance structure of the organization and its committees and committees G4-34 8-9 responsible decision-making on economic, environmental and social issues." "Description of the process by which the highest governing body delegates its G4-35 authority to senior management and certain employees in matters of 8 economic, environmental and social nature." G4-38 Description of the composition of the supreme governing body and its committees 8-11 "Indicate if the person presiding the top governance body is also an G4-39 executive position. If so, describe their executive functions and reasons 8-11 this provision." "Description of the processes of nomination and election of the upper body G4-40 Government and its committees, and the criteria on which the appointment is based 8-11 and the selection of members of the fist one." "Description of the processes by which the highest governing body G4-41 8-9 prevents and manages potential conflicts of interest." "Description of the functions of the highest governing body and senior management in the development, approval and updating of purpose, values or statements G4-42 8-9 mission, strategies, policies and objectives relating to economic impacts, environmental and social organization." "Functional description of the highest governing body in the effectiveness analysis G4-46 of the risk management processes in the organization regarding to 8-9 economic, environmental and social matters." "Indicate how oftenthe highest governing body analyze the impacts, G4-47 8-9 risks and opportunities (economic, environmental and social)."
Ethics and Integrity
G4-56 Describe the values, principles, standards and rules of the organization 29 "Description of internal and external advisory mechanisms towards G4-57 ethical and lawful behavior, and to view matters related to the integrity of the organization, 31 such as report helplines or counseling."
"Description of internal and external mechanisms of reporting unethical conduct G4-58 or illegal and matters relating to the integrity of the organization, such as notification 32 procedures to management line, mechanisms whistleblowing or helplines helplines."
59 SUSTAINABILITY REPORT BMV GRUPO 2014
Indicator Description Page Basic Especific Contents
Management Approach Information
G4-DMA Description of the management of material aspects in the organization and its impacts. 52
Indicator Aspects
Category: Economic
Economic Performance
G4-EC1 Direct economic value generated and distributed within the organization 14-16
G4-EC4 Economic aid granted by government authorities. 39
Category: Environment
Energy
G4-EN3 Internal power consumption 53 G4-EN6 Reducing energy consumption 53 G4-EN7 Reductions in the energy requirements of products and services 53
Emissions
G4-EN15 Direct emissions of greenhouse gases 54 G4-EN19 Reducing emissions of greenhouse gases 54
Transportation
G4-EN30 Significant environmental impacts of personnel transporting 54
General
G4-EN31 Breakdown of costs and environmental investments 55-56
Category: SOCIAL PERFORMANCE
Labor practices and decent work
Employment
"Number and proportion of recruitment and average employee turnover, broken G4-LA1 35-36 by age group, gender and region" "Social benefits for full-time employees not offered to the G4-LA2 temporary or part-time employees, broken down by significant locations 32-33 and activitie" "Relations between labor and management Health and Safety at Work" "Percentage of workforce represented in formal safety and health committees G4-LA5 ,joined by management and employees and established, to help to control and 30 advise on programs of health and safety in labor" "Type and rate of injury, occupational diseases, lost days, absenteeism and number G4-LA6 30 of fatalities related to work by region and gender"
SUSTAINABILITY REPORT 60 Indicator Description Page
Indicator Aspects
Training and Education "Average hours of training per year per employee, broken down by gender G4-LA9 34-35 and by job category" "Programs for skills management and lifelong learning that foster G4-LA10 employability of workers and help them manage the end of their 35 Professional careers" "Percentage of employees receiving regular performance and G4-LA11 34 professional development evaluations , broken down by gender and professional category"
No discrimination
G4-HR3 Number of cases of discrimination and corrective actions taken 32
Security measures "Percentage of security personnel who have received training on the G4-HR7 policies or procedures of the organization on human rights 30 relevant to operations"
Society
Responsability with products
Labeling of products and services
G4-PR5 Results of surveys to measure customer satisfaction 26
Indicator Description Page Financial Services
"Policies with specific environmental and social components applied to the FS1 25 business lines"
"Procedures for assessing and screening environmental and social risks FS2 40 Business lines"
FS16 Initiatives to enhance financial literacy by type of beneficiary 40-44
61 SUSTAINABILITY REPORT