ESG Performance and Governance
ESG Performance
A useful tool for measuring ALFA and its Business Units’ progress is ESG index evaluations. These evaluations provide context for:
- Sharing the evolution over time of ESG topics.
- Receiving feedback to improve internal processes.
- Comparing results with best practices.
The ratings and their evolution over time are presented below:
ESG Management
As part of its commitment to responsible development and administration, ALFA integrates sustainability into its corporate guidelines to promote effective management in each Business Unit. Each of the subsidiaries establish the strategies, goals, programs and projects that consider their environmental, social and governance impacts both in their operations and in the value chain, from the perspective of the various industries in which they participate.
Risk management
The final responsibility for risk identification and management, including ESG risks, lies within each Business Unit. This is done so that the proposed initiatives and strategies are optimized considering the sector in which Business Units operate. The strategy and specific work plan, as well as the times and people responsible for its management are defined based on the nature, probability and impact of each risk.
At the corporate level, an annual process is carried out to group the changes and priorities determined by the businesses, and the main risks that are identified are reported to the Audit Committee within ALFA’s Board of Directors. This year, ESG risks were included in the Committee’s periodic reviews. Each risk’s nature, likelihood, and impact determine the strategy, specific work plan, as well as the times and persons responsible for its treatment. ALFA’s Internal Audit area evaluates control processes, corporate governance, and risk management from a systemic approach.
Dialogue with stakeholders
ALFA defines its stakeholders as those who its activities impact or may impact.
The Company has areas specifically assigned to address them. The information obtained from stakeholders allows us to identify their needs, concerns, and suggestions to establish strategies and programs in response, as well as to detect opportunities for the company’s operations.
