Assessment

4.2. SOCIAL AND ENVIRONMENTAL SUPPLIER ASSESSMENT

(GRI 308-2 103-1, 103-2, 103-3)(GRI 414-1, 103-1, 103-2, 103-3) (SDG 5.2, 8.8, 16.1)

For us, it is important to assess the behavior of our suppliers and the impact on the environment, because this can have an impact on our reputation. In Guatemala, we have begun to perform this type of evaluation, focusing on critical suppliers, according to our Integrated Management System (SIG). During their selection, these suppliers are evaluated under environmental, quality, occupational health and safety criteria. In 2019, in the Energy Business Unit we were able to evaluate 30 suppliers with significant risks of possible negative environmental impacts. In the next stage we are responsible for defining and identifying the specific environmental risks of the supply chain and preparing the corresponding risk matrix. The Real Estate Development Business Unit makes sure that its contractors comply with the current environmental regulation, in addition to the internal criteria that we handle, such as environmental management plans or agreements with the authorities of the environments in which we operate. With regard to social assessments, although we have a clause to rejecting child and forced labor, we are working on identifying in our suppliers, the social criteria to consider. Finally, in the procurement area we perform a legal analysis of all our suppliers and, in some specific cases, a financial, quality and technical analysis. Through these studies, we determine whether bidding companies may be eligible to provide their services or supply goods to our company.

5WORK SAFETY

AND HEALTH (GRI 403-1, 103-1, 103-2, 103-3) (ODS 8.8)