Materiality

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Materiality

(102-46) During 2016, Grupo Argos carried out a materiality exercise that allowed it to prioritize key sustainability issues aligned with the corporate strategy, the organization’s promise of current value and the challenges that sustainability poses for the company.

This exercise was carried out by evaluating the impact that the issues may have on the organization and the influence that may have in the decisions of the stakeholders.
The methodology used is based on the GRI (Global Reporting Initiative) Standard.

As part of this process, related global and regional industry benchmarks, international standards of sustainability such as SASB, DJSI and CDP, sustainability initiatives such as ODS, Global Compact, WBCSD, relevant publications in sustainability were taken into account, as well as internal documents of Grupo Argos which allowed us to identify relevant issues for the company today.

12 relevant topics were consulted, of which seven were prioritized by stakeholders. Board of Directors and Senior Management participated in the identification, prioritization and validation.

Other issues consulted

Relationship with investors, supplier management, Human Rights, occupational safety and health, contribution to social development

Materiality Analysis

1 Investments with ESG approach. Investment management to meet the business goals taking into consideration ESG elements (environmental, social and governmental).
2 Ethics, conduct and transparency. Compliance with ethical standards established for the Business Group.
3 Corporate Governance.. Implementation of measures regarding the governance of society, management practices and behavior of employees, management of information, public knowledge of management, in such a way as to ensure respect of the rights of those who invest in the company.
4 Risk Management. Identification, assessment and mitigation of risks in the activities of Grupo Argos, considering those that have environmental, social, governmental and reputational impacts, in order to promote an environment of prevention and a risk culture.

5 Human talent management. Development of initiatives to maintain employee motivation, strengthen competencies, retain talent and to promote mobility and succession.
6 Climate change strategy. Strategy to prevent, reduce, mitigate and offset impacts associated with business operations; additionally, identify and carry out activities for adaptation to the effects of climate change.
7 Innovation. Ability to organize and direct resources to create new knowledge, develop products, processes and services or improve existing ones.

Statement of Responsibility. Participation of the hub Regional Global Reporting Initiative – GRI in Latin America, in dialogues with stakeholders made in the materiality exercise does not represent a GRI vision regarding the management of any organization.
The intention of its participation was the discussion of the main trends of sustainability relevant for the sector that can affect the possibility of generating long term value.

Aligning material issues with the SDG (Sustainable Development Goals)

To fulfill the commitment with the SDG, Grupo Argos implemented the SDG Compass protocol that seeks to facilitate the understanding of its contribution to the fulfillment of these goals. Following these guidelines, commitments and goals are being defined to integrate current initiatives, determine innovation in processes and technologies, and agree on strategic alliances required for its compliance.

At the same time, Grupo Argos is actively working to identify strategic initiatives aligned with the SDG, to promote value generating activities within their framework.

Grupo Argos develops its Sustainability Policy with the conviction of generating responsible value for its shareholders, always seeking balance between its businesses and investments and externalities. Grupo Argos perceives Sustainable Development as a principle of corporate action, where the preservation of biodiversity is a critical part of the vision. For Grupo Argos, sustainability is at the heart of the strategy, so the company sets concrete goals in the different dimensions, based on the identified material issues:

In addition to ongoing dialogues with Stakeholders and alignment with initiatives within the framework of the Sustainable Development Goals (SDG), Grupo Argos is moving forward with the implementation of its Integrated Human Rights System, to increase its standards of Ethics, Conduct and Transparency, as well as in the quantitative identification of its externalities.
Active management of investments with ESG approach and the factors that enhance risks, are pillars in corporate performance.

Grupo Argos will move forward in its innovation strategy, founded in a Human Talent committed to always seek sustainable alternatives to generate value to shareholders. High standards of Corporate Governance will be maintained, based on transparency. Grupo Argos will move forward in the reduction of its Carbon and Water Footprints, actively contributing to the preservation of biodiversity.

Grupo Argos is seen as a leader in conservation and preservation of biodiversity, generating Sustainable Development that produces responsible value for its shareholders, while contributing to close social gaps of inequality and constantly measuring its externalities, and generating positive impacts in society and its environment.