» COMMUNITY DEVELOPMENT

We generate opportunities, human development and economic growth in our neighbor communities, away from the big cities.

We develop local talent and suppliers through our community programs.

We invest 2.5% of our net earnings in social responsibility projects in our neighbor communities, contributing directly to the UN Sustainable Development Goals (SDG).

We listen to our communities, resolve their questions and concerns, and receive suggestions and recommendations through our Community Care Service, in operation at all our mine operations in Mexico and Peru, and in our Infrastructure Division.

KNOW

OUR PRIORITY
AREAS

COMMUNITY DEVELOPMENT

We generate development and wellbeing in our neighbor communities through investments in infrastructure and services that contribute to the United Nations Sustainable Development Goals, under a framework of respect for human rights.

We focus on people as the engines for development to strengthen the social weave and drive tangible and long-lasting improvements in the quality of life in our communities.

Our management in this area focuses on 3 pillars:

Responsible coexistense

Economic development

Human development

For more information, see Management Approach

OUR COMMITMENTS:

Foster a social change that strengthens the internal structures of the community, together with the different levels of government and local organizations and institutions.
Ensure the voices of the community are heard in decision-making. We have various mechanisms in place to receive concerns, needs and opinions on development.
Respect the rhythm and needs of each community, always adapting to their reality.

Feedback to the community. We reflect the challenges and achievements of the community through our participative development mechanisms.
Building together. Through ongoing dialogue, we seek to identify joint solutions to local challenges.

Highlights

community centers

17 in Mexico and 15 in Peru.

schools

provide quality education to 3,418 children and youth, children of our employees and members of our neighbor communities in Mexico and Peru.

+553

thousand

people have received free medical attention from Dr. Vagón, The Health Train, which has visited 338 communities in Mexico since 2013.

1,364

projects

financed through Grant Funds since 2009, representing an investment of US$8.2 million.

Related policies and codes

Our management in relation to this area is guided by:

Community Outreach Policy

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General Policy for Sustainable Development

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AMC - COMMUNITY ENGAGEMENT PROTOCOL

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GENERAL POLICY OF RESPECT FOR THE RIGHTS OF INDIGENOUS PEOPLES AND COMMUNITIES

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Human Rights Policy Statement

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Code of Ethics and Company Behaviour

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CORPORATE RESETTLEMENT POLICY

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For further information, please refer to the ESG Policies section.

MANAGEMENT APPROACH

Mining / Infrastructure

Transportation

Organizational Management

Our Community Development model is divided into three pillars, where the principal tools are:

Responsible coexistence

Participative social diagnostics: consultation tools to identify the risks at each site that could potentially affect the community. /li>
Community Care Service (CCS): : tool for addressing requests, concerns and complaints, and to identify positive and negative impacts on the community, to inform our social management plan.
Disaster relief: immediate response in support of communities experiencing emergency situations.
Water management: we accompany the different levels of government in Mexico and Peru, providing technical advice and investment in water management works.
Environmental transformation: we promote environmental care actions in our communities focusing on farming, livestock and environmental management.

Economic development

Forjando Futuro (Forging Futures): : job and productive skills training program for the community.
Social infrastructure: projects that promote growth under a vision of generating and sharing value with government authorities and community leaders.
Recreational centers (Tamosura and Pinacate): unique social and family recreational centers that also promote local businesses.
Business committees: made up of local businesspeople to support social responsibility projects for their communities.
Mining investment funds: contributions and mining taxes earmarked for infrastructure and community services.

Human development

Community centers: spaces for strengthening the social weave, building trust and improving the quality of life of the community.
Grand funds: opportunities for the community to bring their diverse social projects and initiatives to life.
Volunteering: : we promote the value of shared responsibility in the development of social programs.
Schools: access to basic education for the children of our employees and for the community.
Flagship programs: model programs with objectives and methodologies for social transformation in our three countries (Mexico, Peru and USA), providing indicators to measure the scope of positive results for participants.
Mineral Discovery Center: : interactive museum dedicated to bringing mining to the community, including guided tours inside the Mission mine (USA).

Corporate goals & targets

Community development related corporate goals

The goal has been met

In progress

Slight deviation from course

The goal has not been met

2022

Institutionalize the process to identify and engage with the indigenous communities near our operations.

Implement a system for receiving and addressing concerns from stakeholders near our operations.

Mining: All company-sponsored schools obtain academic results above their respective national averages.

Mining: Implement an institutional program to develop small and medium local suppliers.

2030

Mining: Increase the local supply by 20%.

Mining: Increase the local workforce by 10%.

Mining: Position our 11 company schools in the top quintile nationally for mathematics and Spanish.

Formalize and implement at least six mechanisms for community participation, engagement and communication at all our sites.

Allocate 30% of our total SDG investments to improving the water quality and quantity in our neighbor communities.

Allocate 2.5% of Grupo México net earnings to projects that contribute to the Sustainable Development Goals.

Follow our annual progress in Corporate Sustainable Goals.

Key indicators

Mining

Social investment

US$96.2

million in social investments by the Mining Division in 2023

People reached

282,254

participants in our social programs in 2023

Programs

2,303

social programs, with 17,583 activities

Addressing community concerns and grievances

602

concerns addressed in 2023 through our Community Care Service.

Volunteers

7,925

volunteers participated in our social programs

Roles & Responsibilities

The organizational supervision of community development management is structured as follows:

Strategy and compliance

Operational supervision

Responsible coexistence

Executive Leadership /

Board of Directors

Evaluates performance and progress on the corporate goals, targets and indicators, and investment projects related to communities. Identifies areas of opportunity, needs, risks and potential synergies
- Audit
  
  Committee
  
  Mechanism developed for the Board to monitor and promptly follow up on the management of our environmental, social and governance-related risks.
  - Sustainable Development Committee
    
    Reviews the strategy, performance and principal improvement projects. Submits recommendations to the Board of Directors.
    - Sustainable Development Department
      
      Leads the design and implementation of projects, initiatives and actions, in close collaboration with the other divisions and relevant areas of the company.
      - Community Development Department
        
        Leads the implementation of the organization’s strategic plan, identifying social risks and opportunities, to define the management mechanisms. Includes building alliances and linkage with strategic groups and authorities at the federal and state levels.
        
        Community
        
        Specialists
        
        Teams that build human and social capital by building trust and long-term relationships with our neighbor communities.
        
        Community
        
        Committees
        
        Gender-inclusive groups of volunteers representing the health, education and business sectors, youth, vulnerable groups, equity and gender perspectives.
        
        Their primary role is to serve as the citizen liaison between the community and the company to define the priority areas and mechanisms for community participation in the social impact assessments.
        
        Environmental surveillance and participative monitoring committee (Peru)
        
        Mechanism for social participation made up of nonprofit leaders, authorities and company representatives.
        
        Actively participates in the quarterly environmental monitoring as laid out in the environmental impact studies for our mine projects and required by Peruvian law.

Evaluation

Our “Casa Grande” Community Development Model was recognized by the Inter-American Development Bank (IDB) as a case study of a successful community model in its publication “Extractive Sector and Civil Society: When the work of communities, governments and industries is synonymous with development”(2018).

The three axes of our Community Development model are aligned to a community materiality matrix, based on the GRI (Global Reporting Initiative) guidelines. This analysis highlights 12 priority themes, on which our programs focus, which were also aligned with the SDGs (Sustainable Development Goals) of the United Nations.

The materiality assessment framework recognizes the importance of identifying, quantifying, and valuing both the positive and negative external impacts generated by core business activities. By applying quantitative metrics linked to identified material issues, and using appropriate valuation techniques, companies can better understand the magnitude of their externalities, enhance accountability, and inform strategies for sustainable growth. Find here more information about our materiality process for external stakeholders and illustrative examples of metrics.

Find more information about our performance in our Community Engagement Report 2023.

From this analysis, we defined and implemented the following actions to evaluate our social performance in the communities near our operations:

Performance indicators

Inhouse assessments and evaluations

Independent assessments

Performance indicators

To monitor and report on the impact of the community development model.

Inhouse assessments and evaluations

Periodically conducted at each site. The Sustainable Development Committee monitors performance results quarterly.

Independent assessments

Our results are also subject to independent reviews. For example, the El Retiro wind farm in Juchitán, Oaxaca, undergoes an independent audit each year based on the Equator Principles.

Our community development performance takes into account the following frameworks:

International

UN Global Compact
Sustainable Development Goals (SDGs) of the United Nations
ISO 26000
United Nations Guiding Principles on Business and Human Rights
Equator Principles

Organizational Management

At Grupo México Transportes, we engage with the communities in the regions where we operate through social development programs and ongoing dialogue with local and regional governments.
It is paramount to us that these communities consider the railroad part of their environment and as a means that promotes development in their region. We have established two lines of action in this area:

Coexistence with the community

Infrastructure and media campaigns to improve the coexistence between the railroad and the community and to reduce accidents at level crossings.
Collaboration with the Mexican authorities and the Mexican National Immigration Service on different programs.

Regional development

El Chepe, a unique passenger train in Mexico, which travels the Q line on the Chihuahua-Pacific route. This project promotes tourism and drives economic and commercial activities, generating an economic spillover for the local communities in the Chihuahua and Sinaloa mountains.
Transportation of goods to vulnerable communities free of charge.
High quality and specialized health services provided through Dr. Vagón, The Health Train, all along our rail lines.

Corporate goals & targets

Community development related corporate goals

The goal has been met

In progress

Slight deviation from course

The goal has not been met

2022

Install equipment at 40 level crossings to prevent accidents in urban and rural areas.

Follow our annual progress in Corporate Sustainable Goals.

Key indicators

Dr. Vagón (2014-2023)

Distance traveled

+77,670 miles

(+125,000 km) traveled

Communities served

338

communities visited

Medical services

2,323,684

medical services delivered

Participants

197,414

participants in health education workshops

Roles & Responsibilities

The organizational supervision of community development management is structured as follows:

Strategy and compliance

Government & Media Relations Office

Manages the channels of communication with the authorities and the media share communiques and official information about our operations and the position of the Transportation Division.

Planning Office

Designs, manages and executes all Transportation Division technical-operational projects.

Evaluation

Our social responsibility methodology counts with different policies, strategies and standards, which include quality of life at work, business ethics, engagement with communities, environmental care and preservation.

Socially Responsible Company

Anually, we participate in the assessment process of the Centro Mexicano para la Filantropía, A.C. (CEMEFI) to obtain this recognition.

Contemporary

Public reports

Public Report: GM Schools

We operate 11 company-sponsored schools, providing spaces for the comprehensive development of our employees and their families, in addition to improving the level of education in these communities. Located in Mexico and Peru, these schools offer preschool, elementary and middle school education.

Public reports

Public Report: Forging Future/Provee – Implementation in Communities

The implementation of the “Forjando Futuro” and “Provee” programs in communities is carried out through a comprehensive and participatory approach, involving various stakeholders, such as local residents, community authorities, educational institutions, and civil organizations.

Public reports

Public Report: GM Schools

Announcements

They recognize Grupo México’s social practices for its commitment to communities.

Grupo México received the ‘Exceptional Companies’ recognition, awarded by the Coordinating Business Council, the Institute for Quality Promotion, and the Communication Council, for maintaining social practices that address the needs of the communities where it operates. According to the jury that, from a social perspective, evaluated the 137 submissions from companies across various industrial sectors […]

Public reports

Public Report: Forging Future – Implementation in Communities

The implementation of the “Forjando Futuro” program in communities is carried out through a comprehensive and participatory approach, involving various stakeholders, such as local residents, community authorities, educational institutions, and civil organizations.

Public reports

Public Report: Social Diagnostics

With a presence in Mexico, the United States, Peru, and Spain, at Grupo México, we believe that a business model centered on responsible and transpa rent management in the social, economic, and environmental spheres is essential to ensure sustainable development. At Grupo México, we establish a due diligence process to identify, prevent, mitigate, and remedy […]