Grupo Bimbo B de C : Management Approach to the Sustainability Strategy

Management Approach to the Sustainability Strategy

At Grupo Bimbo, our sustainability ambition has evolved to accelerate the path toward achieving our purpose. We want to maximize our positive and regenerative impact, while reducing any actual or potential risks to nature and people.

Thus, in 2021, our sustainability strategy "Nourishing a Better World" was born.

This strategy was created through numerous rounds of participation and collaboration with an interdisciplinary team of Grupo Bimbo's associates, a materiality analysis, as well as external input and validation. We want to ensure that our plan is ambitious and achievable, always encouraging dialogue with our main stakeholders.

"Nourishing a Better World" is a roadmap, a challenging plan that aims to turn Grupo Bimbo into a sustainable company by design. To achieve this, we need to get our entire value chain involved, helping them commit to moving in a single direction and ambition.

The strategy's implementation plan is global in scope. It provides a detailed vision of its 8 initiatives and their foundations. This includes the definition of objectives and goals, as well as roadmaps and key steps in each one of them. These 8 initiatives respond to the 16 material topics identified in our latest materiality analysis conducted in 2022. We seek to reduce actual or potential negative risks and impacts, while at the same time identifying how, as Grupo Bimbo, we can have the greatest positive impact on our stakeholders.

Our strategy is divided into three priorities, Baked For You, Baked For Life, and Baked For Nature, as well as its Foundations, with short-, medium- and long-term goals.

Governance Structure

We are committed to maximizing the positive impact we have. To this end, we leverage a solid governance structure. This structure ensures transparency and accountability, continuously updating our governing bodies and stakeholders on the progress of our goals and objectives.

Our sustainability corporate governance structure's objectives are to:

• Look to achieve the objectives established within the sustainability strategy.
• Identify and manage the Company's actual and potential positive and negative impacts on the economy, environment, and people.
• Monitor performance and track progress (performance evaluations linked to environmental goals).
• Ensure that strategic and tactical decisions are aligned with sustainability objectives.
• Provide clarity and transparency regarding sustainability in Grupo Bimbo to the Company's priority stakeholders.

To integrate sustainability in the most effective way across all operations, this corporate governance structure is organized in two distinct levels: Global and Local.

Global Governance

To direct and optimize sustainability in all operations worldwide, at Grupo Bimbo we have a global sustainability team led by our CSO (Chief Sustainability Officer). This team is fundamental for the implementation and transversal sustainability management in the company.

Coordination mechanisms, meetings, and working groups:

• Global Sustainability Committee: This committee is comprised of the CSO, global initiative leaders, and the sustainability team. It meets quarterly to evaluate progress on each initiative, strategic projects, synergies, action plans, and specific needs.
• Global Working Groups (Baked For You, Baked For Nature, and Baked For Life): These specialized groups focus on sharing knowledge and addressing issues. Their objective is to enable and implement initiatives focused on each priority, as well as to work towards achieving goals.
• One-on-OneSessions (Organizational Leaders / Global Initiative Leader (Champions)): Meetings between the Global Sustainability team and initiative and organizational leaders to align ambitions, objectives, and goals. Technical support and coaching are also provided.

• Sustainability Board: Central Global Sustainability Board, whose role is to oversee the implementation of the "Nourishing a Better World" strategy and guide/direct relevant working groups and key functions to ensure agreed activities and targets are completed. It is comprised of the Steering Committee, Functional Directors, the CSO, and Global Sustainability Team.

The Global Sustainability Department, together with the initiatives' leaders (Champions), also send a guide to all business units each year regarding projects that should be considered in their operations' CAPEX, depending on risks, strategies, and/or opportunities.

Local Governance

To ensure compliance and follow-up at the local level, we have an efficient local governance structure. Each business unit has a Sustainability Leader, who coordinates the regional Sustainability Committee. This committee, composed of thematic leaders per initiative, is responsible for implementing and managing the sustainability strategy throughout their region.

Regional committees are also responsible for submitting periodic reports to the global sustainability team. These reports include a summary of regional performance related to objectives, identified progress and delays in meeting targets, including reasons and action plans, challenges and risks specific to each region, additional projects that complement the sustainability strategy, and requests for additional human or financial resources needed to achieve their objectives.

Sustainability Accountability

We hold the Sustainability Board twice a year to follow up on the "Nourishing a Better World" strategy's implementation and progress. Attendees include the CSO, members of the Steering Committee, functional directors, as well as members of the global and local sustainability teams. We seek to generate synergies and collaboration, making high-level decisions.

Sustainable performance is monitored through associated strategic KPIs that are measured on a quarterly and annual basis. This is meant to ensure progress towards the objectives set. Measured KPIs are inputs for accountability meetings with the executive committee, sustainability committee, and each Business Unit's management, as well as to issue reports.

Daily management

We draw up internal manuals detailing processes to manage each of our sustainability initiatives. These manuals are fundamental to accompany our business units in the effective implementation of these initiatives, including goals for 2025 and 2030, main lines of action, general guidelines, coordination mechanisms, and key definitions. These fourteen manuals are updated annually.

We also have a Global Sustainability Policy and an Environmental Policy that establish the general guidelines for integrating sustainability criteria into the strategy, supporting business continuity, and establishing commitments to the protection and conservation of resources and the environment in our operations.

Reporting

We also use an internal digital platform to report, consolidate, and manage water and energy consumption and calculate emissions from our operations. With it, we monitor electricity and gas consumption in our bakeries, as well as electricity consumption in sales and distribution centers. This allows us to evaluate energy efficiency.

Training

The global and regional sustainability teams coordinate their operations teams to identify, plan, monitor, and record all training needs for associates whose work is related to a sustainable aspect in a training plan. We seek to ensure that the team has the skills and experience to coordinate the strategy's management and implementation. This is done through different platforms such as GB University and agreements with universities and specialized institutes.

Communication

The global and regional sustainability teams, as well as the communication teams in each business unit, have communication programs in which they report on the strategy's progress and KPIs, as well as any program or campaign to promote sustainability awareness, performance results, and best practices, among others.

Resources

Business Units have mechanisms in place to provide the necessary financial, technological, and infrastructure resources for the implementation, monitoring, and follow-up of the sustainability strategy.

Verification

As part of our verification processes, we conduct internal audits of our management systems in all organizations, coordinated and executed by the Global Audit Department. Data is audited by an external verification unit in specific cases such as carbon emissions, water reuse, and our products' nutritional profiles.

In addition, each business unit must answer an annual survey to identify its level of maturity in sustainability topics and develop action plans where there are opportunities for improvement.

All information published in our Integrated Report is subject to an internal or external audit process, as appropriate.

Fueling a better world For You

Our commitment is to create a better future for our consumers, associates, and the communities we interact with. To do this, we work to build resilient, fair, and sustainable food systems that meet the near future's challenges.

Best nutritional profiles for all

We operate under our Nutritional Guidelines, which are divided into four axes and are aligned with the World Health Organization's (WHO) recommendations in its Global Action Plan for the Prevention and Control of Non-Communicable Diseases 2013-2022.

Over the years, we have adapted these nutritional guidelines to incorporate the latest updates in nutrition, based on our consumers' needs, to offer products of the highest nutritional quality.

We have bi-weekly sessions where all the initiative's local leaders participate to share progress on each of the goals, challenges, needs, and success stories or best practices.

Transparent sustainable brands

Our commitment is to empower our consumers in making informed choices by providing them with everything they need to know about the ingredients, sourcing, and our commitments behind each product.

We have created our "This is how we do Marketing"responsible communication guidelines, aligned with our Code of Ethics. These outline the key points that our marketing teams must comply with when developing communication campaigns, so that they are trustworthy and transparent.

In line with our commitment to children, we updated our Global Policy on Communication and Advertising of Products for Children to align it with the highest standards of responsible marketing practices established in the WHO guidelines.

Additionally, this year we published our Global Policy on Diversity, Equity, and Inclusion in Brand Communication to convey positive messages through our advertising campaigns.

Enabling healthier plant-based diets

We are committed to promoting nutritionally diverse planetary diets through products that prioritize the presence of whole grains and superior plant-based ingredients.

To increase our reach throughout our value chain, we have a team that includes experts, scientists, research centers, and suppliers to co-create solutions and innovations that enable us to offer our consumers the best products at affordable prices.

Nourishing a Better World For Life

At Grupo Bimbo, we are committed to enriching communities, promoting their well-being, and preserving the environment. People are at the core of our strategy.

Strengthening communities

We focus on community development and people's well-being as key pillars to reduce inequalities and improve the quality of life in the areas where we operate. We develop and support projects that promote well-being, education, physical health, and safety, while protecting the environment.

To effectively manage our community support activities, our Social Investment Committee is responsible for allocating financial and in-kind resources. The Institutional Relations Department coordinates these efforts, ensuring that all programs are carried out in accordance with our global guidelines.

Caring for our people

We are committed to promoting safe, diverse, and inclusive work environments, where our associates can be themselves and reach their full potential.

Safety and Well-Being

In all Grupo Bimbo operations, the safety and well-being of our associates is a priority. Committed to continuous improvement, we strengthen our efforts to enrich and update our Safety and Well-being Model every year.

We maintain a structured system of safety committees, subcommittees, and commissions that operate in all our work centers. The safety committees and teams collect safety data and indicators every month to identify risks, take corrective actions, and implement safety initiatives. They report significant safety progress to the Steering Committee on a quarterly basis.

The Global Safety Policy (internal), under the Global People and Relations Department's purview, establishes general guidelines for providing and maintaining a safe work environment, fostering a culture of safety among associates, their families, and the communities where Grupo Bimbo operates. This policy applies to all associates, contractors, and suppliers in all our organizations, affiliates and subsidiaries.

We also have a Global Well-being Policy that describes Grupo Bimbo's responsibilities and commitments in this area.

Each of our organizations has a Well-being Committee and its respective observatory. This way we can continuously monitor and evaluate the impact of our initiatives, measure the level of participation, identify areas for improvement, and ensure continuous improvement.

Diversity, Equity, and Belonging (DE&B)

We have a central Diversity, Equity, and Belonging Committee that manages the implementation and progress of the group's strategy across all organizations. This year we made progress in our indicators' monitoring system, improving the data quality for decision-making.

We follow up on progress and best practices through different forums on a quarterly and semi-annual basis, reporting our progress to the Central Diversity Committee, the Sustainability Council, the

Steering Committee, and the Board of Directors. We have quarterly meetings with all Organizations, in which we share the progress of the initiatives and our global and local goals.

We have a Global Policy on Diversity, Equity, and Belonging that allows us to establish general guidelines to reflect diversity and promote equity and inclusion in any type of communication of all Grupo Bimbo brands.

We strengthened our global regulatory framework of policies, processes, and protocols related to DE&B, now made up of:

• Global Policy for Diversity, Equity, and Belonging
• Global Breastfeeding Support Policy
• Global Human Rights Policy
• Global Harassment and Discrimination Prevention Policy
• Code of Ethics
• Global Policy on Comment

Nourishing a Better World For Nature

At Grupo Bimbo, we work to integrate sustainability by design, with the ambition of becoming a regenerative company in the future. We are committed to fighting against the degradation of nature and leading the way toward net zero carbon emissions and regenerative agriculture.

Zero waste

Sustainable packaging and circular economy

We are focused on adopting innovative processes to meet the standards required for our products, while optimizing and reducing the amount of packaging, and ensuring that packaging materials are suitable for post-consumer recycling.

We have bi-weekly sessions where all the initiative's local leaders participate and share their progress in each of their goals, challenges, needs, and success stories or best practices.

In addition, we conduct risk assessments in all the countries in which we operate to determine the feasibility of establishing partnerships with companies, government entities, and civil organizations to promote the recovery and recycling of post-consumer waste.

We create waste management plans that focus on reducing waste generation and promoting reuse and recycling. All our actions are carried out in full compliance with applicable local laws and our rigorous environmental standards.

Food Waste

One of our key sustainability indicators is the reduction of food waste. This indicator is monitored periodically as an integral part of our strategic plan.

We have a list of mandatory practices focused on waste prevention and recovery. To ensure effective follow-up, we hold one-on-one meetings, where each organization shares its actions and initiatives to improve results.

Food waste management is integrated into our business plan. Each business unit has a plan for reaching the established goal, which is regularly reviewed in forums defined by Senior Management. Committees have also been created to monitor actions and results. These committees are made up of senior management, including vice presidents from the entire chain, and representatives from operational areas.

To ensure that actions are monitored and comply with this goal, our organizations send a report to Corporate on waste generation in all nodes of the Value Chain each month. In addition, our Global Department has implemented micro knowledge communities to share best practices, review indicators and strategies, and evaluate progress toward common objectives.

Water

Reducing our water footprint represents a major challenge. We must therefore monitor consumption without neglecting our products' quality and safety and by integrating this approach into Regenerative Agriculture.

We conducted a water risk analysis (water quality, availability, weather conditions, etc.) in all our work centers, which allowed us to identify areas of opportunity and take mitigation measures. We adapt our plans according to the regional context and promote water circularity.

Our water stress identification study is updated internally on an annual basis, and with a third party every five years.

In terms of discharges, we comply with the most rigorous international regulations. We have a global standard that monitors our water discharges and ensures compliance with minimum requirements and standards at all our facilities. We promote the reuse of water from our treatment systems, considering: watering green areas, donations, vehicle washing, absorption wells, and discharge to federal bodies (rivers, lagoons, dams, waterways, marine areas, etc.).

Net zero carbon emissions

Today's environmental challenges drive us to raise our ambition and transform our business model to a low-carbon one. Such ambition requires clear targets and strong public commitments to accelerate our path to net zero carbon emissions.

We created the Sustainable Mobility Committee, whose main objective is to closely oversee all strategies related to transforming the logistics and distribution of our products into processes with a lower environmental impact.

We have a manual for electrical installations and sustainable practices in our bakeries, which establishes actions toward zero emissions by 2050, with 16 strategies that will enable us to achieve our goals.

We report progress on this front to the Sustainability Board every six months.

Regenerative agriculture

We are committed to promoting regenerative agriculture systems that improve soil health, biodiversity, ecosystem health, efficient water use, and the quality of life of farmers working in the fields. We

implement region-specific practices, prioritizing their individual characteristics and minimizing soil disturbance.

We have a Global Regenerative Agriculture Policy under the Global Purchasing Department's purview. This policy includes all agricultural raw materials used in Grupo Bimbo products worldwide. Suppliers must apply these criteria in all their operations.

Regenerative Agriculture Framework (attach file)

Nourishing a Better World Foundations

At Grupo Bimbo, we are responsible for complying with the rigorous internal and external standards that have been part of our culture for many years and allow us to maintain global leadership, under criteria of excellence and with a firm commitment to Nourishing a Better World For You, For Nature and For Life.

Environmental standards

We carry out an exhaustive verification of our Environmental Management System, which is verified by third parties and audited by companies specialized in environmental topics.

We use the IBAT tool to map our plants' environmental risks worldwide. This analysis considers impacts at the site of the plants and within a 50 km radius around them.

Each of our sites performs an annual sustainable buildings self-assessment, the result of which indicates the degree of progress they have made in best practices for sustainable facilities.

Food quality and safety

In 2023, we began the migration from the Global Standard for Food Safety (EGIA) to the implementation of our new Global Quality and Safety System, which establishes clear priorities and strategic KPIs along the entire value chain.

With the migration to global standards, the Quality and Safety strategy is now aligned with the company's Vision and Mission, as we seek to position Quality and Safety processes as one of the key capabilities to meet business goals and objectives.

Human rights and labor standards

Grupo Bimbo is renowned for having high environmental, quality, and social standards that are the foundations of its operations in all countries where it is present. Through the Global Human Rights Policy and the Supplier Code of Conduct, we establish general guidelines on respect for the human rights of our associates, stakeholders, value chain, and the communities in which we operate.

Sustainable sourcing of raw materials

We have established the Responsible Sourcing Council in collaboration with the Agribusiness, Sustainability, Finance, Emissions, and Procurement teams. Through this council, key ingredients have been defined, mostly focused on raw material sourcing (80%), along with specific company goals and priorities.

We monitor deforestation throughout our supply chain using Starling, a satellite tracking tool developed in collaboration with Airbus and the Earthworm Foundation.

To achieve our goals, we focus on collaboration, empowerment, and transparency with our supply chain. To achieve this, we have a Sourcing Policy for our suppliers.

We evaluate our suppliers and their plans to implement our policy. We also have a mechanism to manage claims and complaints in the palm oil supply chain. We follow processes for verification and monitoring of NDPE commitments.

Moreover, we conduct Engagement for Policy Implementation (EPI) assessments with our key agricultural suppliers to understand their level of commitment to sustainability and work together to develop action plans.

IMPACTS, RISKS, AND OPPORTUNITIES

We have identified our environmental, social, and governance (ESG) impacts in the countries where we operate. Based on this, we have defined our priorities and goals, focusing each measure undertaken to mitigate and reduce the potential or actual negative impact, maximizing value creation for all our stakeholders and the planet.

The evaluation, management, and measurement of the impact on our material topics is further developed in each section of our three strategic pillars: Baked For You, Baked For Life, and Baked

For Nature.

Risk Management

We understand the importance of managing risks efficiently and proactively. Therefore, we have established a global structure dedicated to risk management.

Our risk identification methodology allows for the updating and monitoring of all legal and other requirements applicable to each organization's operations.

The Risk Committee meets twice a year to carry out the identification exercise and, where appropriate, update of risks, reporting to senior management. These sessions are crucial to maintain a current view of the risks we face, as well as to ensure effective management.

Whistle-blowing and irregularities management mechanism

We have effective communication and training strategies in place to familiarize our associates with our various channels for reporting any conduct contrary to our policies.

The different reporting channels are:

• Telephone: [phone] available 24 hours a day.
• E-mail:[e-mail]
• Website:https://grupobimbo.service-now.com/linea_comenta
• Internal platforms

All cases received are attended and investigated. Depending on the outcome, action plans are activated, ranging from training to termination of employment or contractual relationship.

Related Committees

• Grupo Bimbo's Global Legal and Compliance Department: responsible for promoting, regulating, and standardizing integrity and transparency standards throughout the company. It oversees compliance with legal regulations of each country.