Report - COP Prototype

2022 Communication on Progress

Bio Pappel, S.A. de C.V.

Published date

June 30, 2022

No. of questions

Supplemental files

IS2021_20 JUNIO_web.pdf IS2021_20 JUNIO_exportar.pdf 20201216 CP-C-PL-CH-02.02 Política de Igualdad Laboral y No Discriminación v4.pdf 20213011 CP-N-PL-GB-01.14 Antifraude.pdf 20201222 CP-C-PL-CH-02.01 Derechos Humanos.pdf 20201230 CP-N-PL-GB-01.13 Política Relaciones con la Comunidad v2.pdf 20201216 CP-N-PL-GB-01.04 Anticorrupción v2.docx.pdf Código de Ética Bio Pappel_Proveedores_27 SEP.pdf Código de ética 2020_Clientes_27 SEP.pdf 20210908 CP-C-PL-CH-02.03 Prevención de Riesgos Psicosociales.pdf 20210122 CP-C-PL-CH-02.04 Seguridad Integral y Salud Ocupacional -v3.pdf 20210120 CP-N-PL-GB-01.12 Política Ambiental.pdf 20210107 CP-N-PL-GB-01.10 Cambio Climático.pdf 20201216 CP-N-PL-GB-01.05 Conflicto de Intereses v2.pdf 20210122 CP-C-PL-CH-02.04 Seguridad Integral y Salud Ocupacional -v3.pdf 20210908 CP-C-PL-CH-02.03 Prevención de Riesgos Psicosociales.pdf 20201216 CP-C-PL-CH-02.02 Política de Igualdad Laboral y No Discriminación v4.pdf 20201222 CP-C-PL-CH-02.01 Derechos Humanos.pdf

CEO Statement

Signed

Governance

Policies and Responsibilities

1. Does the Board / highest governance body or most senior executive of the company:

Issue an annual statement about the relevance of sustainable development to the company

Issue an annual statement that addresses impacts on both people and the environment

Issue an annual statement highlighting a zero tolerance for corruption

Sign off on organizational sustainability targets

Supervise Environmental, Social, and Governance reporting

Regularly review potential risks related to the business model

None of the above

Optional comment

Please review our 2021 Sustainability Report at: https://www.biopappel.com/en/sustainability/sustainability-report

2. Does the company have a publicly stated commitment regarding the following sustainability topics?

	No, this is not a current priority	No, but we plan to have a commitment within 2 years	Yes, and the commitment is focused on our own operations	Yes, and the commitment includes our own operations and the value chain	Yes, and the commitment includes our own operations and the value chain along with communities and society
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Optional comment

Please review our 2021 Sustainability Report at: https://www.biopappel.com/en/sustainability/sustainability-report

3. Does the company have in place a code of conduct regarding each of the following sustainability topics?

	No, this is not a current priority	No, but we plan to have a code of conduct within two years	Yes, focused on employee conduct	Yes, focused on employees and suppliers	Yes, focused on employees, suppliers, and other business relationships
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Optional comment

We have a Code of Ethics for all employees, and also a Code of Ethics for Clients and Suppliers. Please review all documents at: https://www.biopappel.com/en/ethics-line

4. Has the company appointed an individual or group responsible for each of the following sustainability topics?

	No one is specifically responsible for this topic	Yes, with limited influence on outcomes (e.g., limited access to internal information, limited decision-making authority)	Yes, with moderate influence on outcomes (e.g., has access to relevant information, reports to senior manager)	Yes, with direct influence of some outcomes (e.g., has access to relevant information, includes one or more senior manager with decision making rights	Yes, with direct influence at the highest levels of the organization (e.g., has access to relevant information, includes most senior members of organization)
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Optional comment

Our Board of Directors cooperates closely with each of the Business Groups’ Offices and the Finance, Administration, Sustainability, and Competitivity departments to guarantee internal regulations and corporate planning compliance. Please review our 2021 Sustainability Report at: https://www.biopappel.com/en/sustainability/sustainability-report

5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?

	No formal structure	Yes, and with limited influence on outcomes (e.g., limited access to internal information necessary to understand risks, poor representation from relevant departments or functions)	Yes, with moderate influence on outcomes (e.g., it includes representatives of some functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, reports to senior manager)	Yes, with direct influence on some outcomes (e.g., it includes representatives of functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, it involves one or more members of senior management)	Yes, and with direct influence at the highest level of the organization (e.g., full access to relevant information, it involves members at highest level of organization)
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Optional comment

Prevention

6. Does the company have a process or processes to assess risk?

	No, this is not a current priority	No, but we are planning to develop one in the next two years	Yes, related to our own operations	Yes, related to our own operations and entire value chain and other business relationships
Human rights risks
Labour rights risks
Environmental risks
Corruption risks

Optional comment

Yes, we have a Risk Management Model for each topic. Please review our 2021 Sustainability Report at: https://www.biopappel.com/en/sustainability/sustainability-report

7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?

	No, this is not a current priority	No, but we are planning to develop one in the next two years	Yes, related to our own operations	Yes, related to our own operations and entire value chain and other business relationships
Human rights risks
Labour rights risks
Environmental risks
Corruption risks

Optional comment

Please review our 2021 Sustainability Report at: https://www.biopappel.com/en/sustainability/sustainability-report

Concerns and grievance mechanisms

8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?

No, this is not a current priority

No, but we plan to within two years

Yes, we have an informal process (e.g., through supervisors, others)

Yes, we have a formal process

Optional comment

Understanding the opinions and concerns of our stakeholders and supporting them in any situation that breaches our principles or our Code of Ethics, is fundamental to maintaining trusting relationships. For this reason, we have the Bio Pappel Ethics Line, an easy-to-access reporting system that guarantees the security and confidentiality of those who use it. Although the operation of the Bio Pappel Ethics Line is operated through a third-party specialist in managing complaints and reports, we internally review and attend to all the information received to provide a comprehensive solution. https://www.biopappel.com/en/ethics-line

8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.

	No	Yes
Is the process communicated to all employees/workers in local languages?
Is the process available to non-employees (e.g., contractors, vendors, suppliers)?
Is the process confidential (e.g., whistleblowing process)?
Are there processes in place to avoid retaliation?
Can concerns be raised about suppliers or other business relationships (e.g., clients, partners, etc.)
Other (Please provide additional information)

Optional comment

9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?

	No process to enable remedy to stakeholders	Remedy available to some stakeholders (i.e., some geographies, employees only)	Remedy is available to all affected stakeholders	Remedy is available to all stakeholders, and suppliers are expected to have similar policies
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Optional comment

https://www.biopappel.com/en/ethics-line

Lessons

10. How does the company capture lessons regarding each of the following sustainability topics?

	No lessons are regularly captured	Conducts root cause analyses/investigation of major incidents	Conducts root cause analyses/investigation and changes organizational policies, processes, and practices accordingly	Systematically conducts root cause analyses/investigation and leverages learnings to influence both internal and external affairs
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Executive Pay

11. Is executive pay linked to performance on one or more of the following sustainability topics?

Optional comment

Through our Development Management Model Bio Talent, we appraisal the achieved goals and recognize them with bonus performance.

Board Composition

12. Percentage of individuals within the company’s Board / highest governance body by:

	Number/Percentage	Not applicable (Please provide additional information)
Total number of board members (#)	10
Male (%)	90
Female (%)	10
Non-binary (%)	0
Under 30 years old (%)	0
30-50 years old (%)	20
Above 50 years old (%)	80
From minority or vulnerable groups (%)	0
Executive (%)	100
Independent (%)	0

Optional comment

Please review our Sustainability Report at: https://www.biopappel.com/en/sustainability/sustainability-report

Data Assurance

14. Is the information disclosed in this questionnaire assured by a third-party?

No assurance for any metrics

Limited assurance for minority of metrics (e.g., GHG emissions only)

Limited assurance for majority of metrics

Review or Verication Letter in Sustainability Report at: https://www.biopappel.com/es/sustentabilidad/informes-de-sustentabilidad

Reasonable assurance for minority of metrics

Reasonable assurance for majority of metrics

Other (Please provide additional information)

Human Rights
Materiality / Saliency
1. Which of the following has the company identified as material human rights issues connected with its operations and/or value chain, whether based on their salience (i.e., the most severe potential negative impacts on people) or another basis?
Freedom of association and the effective recognition of the right to collective bargaining
Child labour
Forced labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)
Freedom of expression
Access to culture
Access to water and sanitation
Digital security / privacy
Rights of women and/or girls
Rights of indigenous peoples
Free, prior and informed consent
Rights of refugees and migrants
Other
Optional comment
Bio Pappel had a commitmet to with it´s Human Rights Policy as well as trade partners. The Code of Ethics includes the mechanism to attend complaints about dicrimination, El Código de Ética de Bio Pappel contiene la regulación específica para la atención de las quejas y denuncias. Dentro de las situaciones que pueden ser planteadas se encuentran: cualquier tipo de discriminación, hostigamiento, workplace harrasment, sexual and phsicological harrasment or any Human Rights violations, among others.
Response
8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.
At Bio Pappel, we have a Human Rights Policy approved by our highest authorities, applicable to all personnel, in addition to expressly committing ourselves to disseminate it among our business partners. With the intention of ensuring respect for Human Rights, Bio Pappel disseminates the Code of Ethics for suppliers which expressly includes respect for the following: Respect human rights, may not hire minors, do not discriminate against people because of their gender, religion, sexual orientation or nationality, Regulate the hours of work and rest of their employees. No physical, verbal, psychological, sexual, or any kind of abuse. Fair and competitive remuneration to its employees, comply with safety, health, and environmental standards when carrying out their activities. Similarly, Bio Pappel's Code of Ethics considers respect for human rights through which it regulates our business actions with our stakeholders, as well as the Code of Ethics for Clients. These Codes of Ethics are available on our website, as well as our mechanism for attention to breaches of the provisions of these documents, which allows us to identify risks, and take the necessary measures to prevent them, in addition to being a channel of communication with different actors. This mechanism contemplates the monitoring of each phase of the service process, with the intention of keeping them interested party informed, until the conclusion of the process and its due resolution or action taken, providing transparency throughout the process. they disseminate our Codes of Ethics to our stakeholders and are available on our website with access to the entire public. https://www.biopappel.com/es/linea-ethics

Labour

Commitment

1. Does the company have a policy commitment in relation to the following labour rights principles?

	No, and we have no plans to develop a policy	No, but we plan to in the next two years	Yes, included within a broader policy	Yes, articulated as a stand-alone policy	Not applicable (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
2021
Forced labour
2021
Child labour
2021
Non-discrimination in respect of employment and occupation
2021
Occupational safety and health
2021
Working conditions (wages, working hours)

1.1. For each labour rights policy, is it:

	Aligned with international labour standards?	Publicly available?	Approved at most senior level of the company?	Applied to the company’s own operations?	Applied to the company’s supply chain and/or other business relationships?	Developed involving labour rights expertise from inside and outside the company?	Other (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

Prevention

2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?

	No engagement on this topic	To better understand the risks/ impacts in question	To discuss potential ways to prevent or mitigate the risks/ impacts in question	To agree on a way to prevent/ mitigate the risks/ impacts in question	To assess progress in preventing/ mitigating the risks /impacts in question	To collaborate in the prevention/ mitigation of the risks/ impacts in question	Other (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?

	Provided internal training/ capacity building for the direct workforce	Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)	Conducting an audit process and/or corrective action plan	Collective Action with peers or other stakeholders, in particular workers' organizations, to address the issue	Collaboration with governmental or regulatory bodies	Other (Please provide additional information)	No action within reporting period
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

4. Who receives training for the following labour rights issues?

	No training provided	Select employees	All employees	Contractors	Direct suppliers of the organization	Indirect suppliers of the organization	Other – such as partners, clients, etc.
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?

	No monitoring of progress	Review issues on ad-hoc basis	Set annual targets/ goals, track progress over time (internal programs only)	Set annual targets/ goals, track progress over time (internal and external programs)	Other (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

Performance

6. What is the percentage of employees covered under collective bargaining agreements?

	Percent of employees (%)	Unknown
Employees covered under collective bargaining (%)	54

Optional comment

54% of our employees are included in collective bargaining agreements. We determine salaries and changes to the benefits packages of our employees through their trade union representatives

7. What is the percentage of employees in a trade union or other workers' organization?

	Percent of employees (%)	Unknown	Not applicable (Please provide additional information)
Employees in a trade union or on a worker committee (%)	54

Optional comment

54% of our employees are included in collective bargaining agreements. We determine salaries and changes to the benefits packages of our employees through their trade union representatives

8. In the course of the reporting period, what was the percentage of women in:

	Percent of women (%)	Unknown
Senior leadership level position	0.24
Non-executive board	0

9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?

	Salary ratio (%)	Unknown	Choose to not disclose
Women / Men (%)

10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?

	Frequency of injury	Unknown	Choose to not disclose
Frequency of injury	10.4

11. In the course of the reporting period, what was the company’s incident rate?

	Incident rate	Unknown	Choose to not disclose
Incident rate	3288

Response and Reporting

12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?

	Yes	No	Choose to not disclose	Not applicable (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

Bio Pappel is governed by its Human Rights Policy which establishes our commitment to human rights, all in accordance with the highest international standards, especially the Guiding Principles on business and human rights of United Nations of 2011. In addition, the Code of Ethics of Bio Pappel contains specific regulations for the attention of complaints and reports. within the situations that may be raised is any type of discrimination, harassment, workplace harassment, sexual harassment, psychological harassment, or any violation of human rights, the object of this policy. Additionally, Suppliers have the obligation to guarantee that all the activities they carry out are carried out in safe working conditions, that the people involved are treated with respect and dignity with strict adherence to safety, health, and environmental regulations, as well as to principles of social responsibility as follows: Respect human rights. You may not hire minors. Do not discriminate against people because of their gender, religion, sexual orientation, or nationality. Regulate the hours of work and the rest of its employees. No physical, verbal, psychological, sexual, or any kind of abuse. Fair and competitive remuneration for its employees. Comply with safety, health, and environmental regulations when they do their activities. They must not carry out activities when they are under the influence of illicit drugs or alcoholic beverages, nor have possession of the substances mentioned in the Bio Pappel facilities. Bio Pappel has the certification in NMX-R-025-SCFI-2015 in Labor Equality and Non-Discrimination Standar that contemplates specific policies to ensure the same working conditions for all our people.

Environment

Commitment

1. Does the company have a formal policy on the following environmental topics?

	No, and we have no plans to develop a policy	No, but we plan to in the next two years	Yes, included within a broader policy	Yes, articulated as a stand-alone policy	Not applicable (Please provide additional information)
Climate Action
2021
Water
2021
Oceans
2021
Forests / Biodiversity / Land Use
2021
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
2021
Energy & Resource Use
2021

1.1. For each environmental policy, is it:

	Aligned with international environmental standards?	Publicly available?	Approved at most senior level of the company?	Applied to the company’s own operations?	Applied to the company’s supply chain and/or other business relationships?	Developed involving environmental expertise from inside and outside the company?	Other (Please provide additional information)
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

Prevention

2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?

	No engagement on this topic	To better understand the risks/ impacts in question	To discuss potential ways to prevent or mitigate the risks/ impacts in question	To agree on a way to prevent/ mitigate the risks/ impacts in question	To assess progress in preventing/ mitigating the risks/ impacts in question	To collaborate in the prevention/ mitigation of the risks/ impacts in question	Other (Please provide additional information)
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?

	Provided internal training/ capacity building for the direct workforce	Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)	Conducting an audit process and/or corrective action plan	Collective Action with peers or other stakeholders to address the issue	Collaboration with governmental or regulatory bodies	Other (Please provide additional information)	No action within reporting period
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?

	No monitoring of progress	Review issues on ad-hoc basis	Set annual targets/ goals, track progress over time (internal programs only)	Set annual targets/ goals, track progress over time (internal and external programs)	Other (Please provide additional information)
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?

	Yes	No	Choose to not disclose	Not applicable (Please provide additional information)
Climate Action
Water
Oceans
This doesn't represent a material index for the company.
Forests / Biodiversity / Land Use
This doesn't represent a material index for the company.
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

Climate Action

6. What were the company’s gross global greenhouse gas emissions for the reporting period?

Scope 1 Emissions

Full

None

Emissions (tCO2e)

1221539

Scope 2 Emissions

Full

None

Emissions (tCO2e)

617643

Scope 3 Emissions

Full

Partial

None

Scope 3 measurement is currently under development

Emissions (tCO2e)

7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?

Percent of revenue (%)

Unknown

Not applicable (Please provide additional information)

8. Has the organization acted to support climate change adaptation and resilience?

We have taken action to increase organization-wide resilience to climate change

We have taken action to increase resilience in our supply chains

We have taken action to increase resilience in the communities in which we operate

We have provided funding for climate change adaptation and resilience initiatives and projects

We have not taken actions to build climate change resilience in the reporting period

Other (Please provide additional information)

Unknown

Energy / Resource Use

9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.

% of total energy consumption

Unknown

Technology

10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?

Percent of total revenue (%)

100

Elaboramos papel y productos de papel 100% reciclados.

Unknown

Not applicable (Please provide additional information)

Sector-specific: Water

12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.

Water withdrawal (volume of water in megaliters):

	Mega-liters	Unknown	Not applicable (Please provide additional information)
Total	24262
Groundwater:	12257
Surface water:	5147
Rainwater:	0
Wastewater:	15499
Percentage of water withdrawn in regions with high or extremely high water stress (%)	14

Water consumption (volume of water in megaliters):

	Mega-liters	Unknown	Not applicable (Please provide additional information)
Total	8762
Groundwater:
Surface water:
Rainwater:
Wastewater:
Percentage of water consumed in regions with high or extremely high water stress (%)	14

13. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.

Water intensity of products (cubic meter/$):

8.81

Unknown

Not applicable (Please provide additional information)

Sector-specific: Air pollution

17. Where applicable, please report the company's emissions of the following pollutants during the reporting period.

	Emissions (tCO2e)	Unknown	Not applicable (Please provide additional information)
NOx	577
SOx	302
Volatile Organic Compounds (VOC)
Hazardous air pollutants (HAP)
Particulate matter (PM10)	61
Persistent organic pollutants (POP)
Other (please specify in text box)	67

Optional comment

Methane 67

Sector-specific: Waste

18. Please report the company's total weight of waste generated in metric tonnes during the reporting period.

Waste Generated (t)

1894227

Unknown

Not applicable (Please provide additional information)

19. Please report the percentage of the company's waste that was hazardous waste (i.e., hazardous waste ratio) during the reporting period.

Hazardous Waste Ratio (%)

Unknown

Not applicable (Please provide additional information)

20. Please report the company's estimated metric tonnes of single-use plastic consumed wherever material along the value chain during the reporting period.

Single-use plastics (tonnes)

Unknown

Not applicable (Please provide additional information)

Overall Environment

21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.

Urban Forest®: The Circular Economy. We have a wide range of paper products made with 100% recycled material, thanks to the development and implementation of our Circular Economy model known as Urban Forest ®. It is based on the revaluation of post-consumer waste to be used as raw material in the manufacture of new products. Urban Forest® is the backbone of our business strategy, which has allowed us to continue generating economic value and promote production practices aligned with the Circular Economy model within the industry. Based on our model, we have made a significant contribution to increasing the paper collection rate in Mexico. According to the information shared by the Pulp and Paper Chamber, our outstanding contribution to Mexico´s collection rate generated a record 58.4% in 2021 compared to 40% in 2000. Energy. Our efforts have focused on the continuous improvement of production processes and the modernization of our existing infrastructure to ensure optimal energy consumption in our production plants. And thus, comply with national and international energy regulations and contribute to the Sustainable Development Goals and the Paris Climate Agreement. We innovate in the industry and achieve energy self-sufficiency through our Bio-ENERGY System. This model allows us to generate clean energy by taking advantage of the steam resulting from operations. Emissions. Our circular economy model, Urban Forest®, has been a determining factor in achieving our goal of reducing our environmental footprint by promoting recycling and generating alliances with strategic groups to boost a low-carbon green economy. We regularly and voluntarily report all greenhouse gas emissions through the Mexico GHG Program, an initiative coordinated by SEMARNAT, CESPEDES, and the Carbon Disclosure Project to ensure the transparency that characterizes us as a company. Water. To promote sustainable production practices, specifically the responsible and efficient use of the water required in our industrial processes, we launched the zero-effluent system that has made it possible for us to recycle 63% of water. In addition, the water that does not reach the reuse process goes through treatment systems to ensure that its release complies with the parameters indicated by government authorities. As a result, our water use and consumption position us as one of the paper production companies with the lowest water use worldwide.

Anti-corruption

Commitment

1. Does the company have an anti-corruption compliance programme?

No, it is not an immediate business priority

No, but we plan to in the next two years

Yes

We have a solid governance structure that, under the guidelines established in our Code of Ethics, promotes and manages the principles of integrity and transparency within the company, as well as responsible decision-making and the promotion of sustainability in business strategies that allow us to generate shared value. Through the ethical, inclusive, and transparent leadership of our Corporate Governance, we contribute to the goals of SDG 16: Peace, Justice, and Strong Institutions. Is fundamental to the role of our Chief Executive Officer in directing the company’s efforts to achieve our goals and drive sustainable growth Its main tasks include: • To manage, assess, and implement business strategies. • To ensure that the business operation is managed within the strategic framework approved by the Board of Directors. Moreover, in collaboration with the business groups and the areas of Finance, Administration, Sustainability, and Competitiveness, compliance with corporate plans and internal regulations is ensured. To ensure that our activities and interactions with stakeholders are conducted with honesty, trust, and integrity, we inform and train 100% of our employees on our Code of Ethics. This document integrates our principles and business philosophy, aligning itself with the regulations of the different regions where we have a presence and to the highest standards of business ethics, quality, and sustainability. We periodically review the content of our Code of Ethics in order to update the guidelines and incorporate new measures that require attention. In addition, we have a Supplier Code of Ethics and Customer Code of Ethics, which establish the guidelines for building lasting, equitable, and fair business relationships with our value chain. Understanding the opinions and concerns of our stakeholders and supporting them in any situation that breaches our principles or our Code of Ethics, is fundamental to maintaining trusting relationships. For this reason, we have the Bio Pappel Ethics Line, an easy-to-access reporting system that guarantees the security and confidentiality of those who use it. Although the operation of the Bio Pappel Ethics Line is operated through a third-party specialist in managing complaints and reports, we internally review and attend to all the information received to provide a comprehensive solution.

2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?

No, and we have no plans to develop a policy

No, but we plan to in the next two years

Yes, included within a broader policy

Yes, articulated as a stand-alone policy

Optional comment

Prevention

3. Who receives training on anti-corruption and integrity?

3.1. How often is such training provided?

	One time only	Every year	Every two or more years	We do not collect this data
All employees
Select employees
Contractors
Direct suppliers of the organization
Other – such as partners, clients, etc.
Indirect suppliers of the organization

4. Does the company monitor its anti-corruption compliance programme?

No, we do not monitor the anti-corruption compliance programme

Review issues on ad-hoc basis

Yes, through internal employee self-evaluations

Yes, through automated controls monitoring

Yes, through external independent monitoring

Yes, through other mechanisms

Response and Reporting

5. Please report the company's total number and nature of incidents of corruption during the reporting year.

	Number of incident(s)	Unknown	Choose to not disclose
Confirmed during the current year, but related to previous years	0
Without incidents
Confirmed during the current year, and related to this year	0
Without incidents

6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?

Initial case assessment

Internal investigation

Review by risk / ethics committee

Review by board of directors

External audit / review

Other (please provide additional information)

Not applicable/no incidents in the reporting period

Optional comment

In the event that an incident occurs, the initial evaluation is carried out, it is investigated internally, the risks are analyzed and it is presented to the ethics committee. As a preventive measure, internal audits are also carried out.

7. Does your company engage in Collective Action against corruption?

No, it is not an immediate business priority

No, but we plan to in the next two years

Yes (please explain)

We were evaluated by Corporate Integrity 500, Mexicans against corruption and impunity, as well as Mexican transparency. Is a great collaboration to inform in a clear way, the role that the initiative plays in the face of corruption. Obtaining thus, one of the highest qualifications. https://contralacorrupcion.mx/wp-content/uploads/2021/12/ic500-2021.pdf

8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.

We have a solid governance structure that, in accordance with the guidelines established in our Code of Ethics, promotes and manages the principles of integrity and transparency within the company, as well as responsible decision-making and the promotion of sustainability in business strategies that allow us to generate shared value. The role of our General Management is fundamental to direct the company's efforts to achieve our goals and drive sustainable growth. Also, in conjunction with the Directorates of the Business Groups and the Finance and Administration and Sustainability and Competitiveness areas, compliance with corporate plans and internal regulations is ensured. To ensure that all our activities and interactions with stakeholders are carried out within a framework of honesty, trust, and integrity, we disclose and provide training to 100% of the staff about our Code of Ethics. This document integrates our principles and business philosophy, aligning itself with the regulations of the different regions where we have a presence, as well as with the highest standards of business ethics, quality and sustainability. Likewise, we have an Anti-Corruption Policy, as well as the Code of Ethics for Suppliers and the Code of Ethics for Clients, which establish guidelines for building lasting, equitable and fair business relationships with our value chain. Knowing the opinions and concerns of our stakeholders, in addition to providing them with support in any situation that violates our principles or our Code of Ethics, is essential to maintain relationships of trust. For this reason, we have the Bio Pappel Ethics Line, an easily accessible reporting system that guarantees the safety and confidentiality of the people who use it. Although the operation of the Bio Pappel Ethics Line is carried out through a third-party specialist in the management of complaints and reports, internally we review and attend to all the reports received to provide them with a comprehensive solution. We train our staff annually. We all have a very important role in the ethics of Bio Pappel, but if you have staff in your charge, there are additional responsibilities that you must consider: Responsibility of Supervisors, Managers, and Directors, Promote a positive, inclusive and fair work environment where respect prevails. Exemplify our values. Have an open-door policy that encourages your employees to ask questions and raise concerns. The Human Capital Department is responsible for disseminating and updating the Code of Ethics. Personnel who have doubts regarding the interpretation and application of any provision of this Code should contact their direct superior. Within our business practices, it is prohibited to carry out and hide acts of bribery, corruption, collusion, or any activity that involves a payment of money or in-kind to any official or public or private entity. We do not directly or indirectly offer any monetary benefit, or by any other unethical means, in order to obtain, retain or secure any improper business advantage; even the appearance of such conduct should be avoided.