Responsible consumption
- We expanded our offering of products with sustainable features, which is constantly growing. We began with Liverpool and textile products, prioritizing cotton apparel that has the international Better Cotton Initiative label. We try to communicate to customers the importance of each certification and to contribute to environmental efforts with their shopping decisions.
- These efforts are augmented by the development of store-brand products that meet the highest standards of sustainability, as explained in the chapter on commercial partner management.
- To ensure sustainability is present throughout the Liverpool store experience and to involve customers as active participants in this effort, in 2022 we launched products with a cause in our restaurants and gourmet shops, which donate to various social causes.
Human capital management
El Puerto de Liverpool is a place of professional opportunity for our employees, and we are concerned about their welfare.
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We expanded our offering of textile products with sustainable features that have the international Better Cotton Initiative label.
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Faced with the challenges of the pandemic, last year we reacted swiftly to guarantee their health and their jobs and 2021 we redoubled our efforts. We updated COVID-19 response protocols and encouraged vaccination. At the same time, we organized a flu vaccine campaign. Our medical team was available to employees at all times, as was our psychological help line.
Our culture of prevention and care among employees was crucial, including the efforts of staff who acted as Wellness Ambassadors and Contagion Control Supervisors. We set out awareness-raising message throughout the year.
We continue to advance in our basic strategy lines aimed at talent development: diversity, training and development and wellbeing in its broadest sense.
Diversity
We promote a culture of diversity and inclusion in hiring and promotion within our teams, in keeping with our Code of Ethics.
That is why we believe it is fundamental to train and build employee awareness, which we do through talks on sexual diversity and gender.
We want to continue to strengthen ability to offer women options for professional development. At Suburbia, we offered leadership training to women in coordination, management and under-management positions, building a train of management succession. We will extend the scope of this program in 2022.
We have also brought in the first generation of trainees with disabilities, under an alliance with organizations specializing in effective integration.
Based on these efforts, in 2022 we will be working toward certification of the first set of workplaces by Mexican standard NMX-R-025-SCFI-2015, which addresses job equality and non-discrimination.
Training and development
GRI 404-2
We facilitate and assist our employees with their professional and personal advancement.
- Liverpool Virtual University offers primary, middle-school, high-school, technical, college and master’s level education, giving employees an opportunity to acquire stronger job skills.
- We added specialized technical training programs for the different positions in our teams.
To attract talent and promote professional opportunities for youth, we have internship programs, which we reinforced through eight additional agreements with universities and other educational institutions in 2021.
Wellness
GRI 401-2
In addition to the abovementioned measures in response to the COVID-19 pandemic, we continued our efforts to ensure the health, safety and satisfaction of our employees.
During the year our holistic wellness program called “Creating a better me” publicized best financial health practices along with physical and emotional health talks. We also held our annual run, conducted virtually and joined by 2,558 employees.
Thanks to this holistic focus, we once again excelled in the working conditions. We came in 15th among the Super Workspaces in the 2021 Top Companies ranking, and Top Employer 2022 for our benchmark human resource practices in 2021.
Relations with commercial partners
Our commitment to best environmental, social and governance practices (ESG) extends to our suppliers as well. We try to support them in managing their businesses sustainability, reducing the risk of supply-chain impacts.
We encourage innovation focused on sustainable development, both in their management models and in their products and services, always guaranteeing the highest quality, for the safety of our customers.
Our priorities include vendor evaluations, sustainable product development and diligence about quality.
Responsible sourcing
GRI 308-2, 404-2
- We request a Social Responsibility audit of all suppliers and installations, consistent with internationally recognized principles and codes like ETI®, BSCI, SEDEX, WRAP, and others, which examine auditing labor practices like fair wages, the absence of child labor, and working conditions in our suppliers’ factories. We also assess their environmental performance.
- The process is structured in phases: the first covers 520 suppliers and the second covers another 296. This assessment has already been applied to suppliers of all the Suburbia and Liverpool store brands, to suppliers with orders totaling more than 500,000 pesos, and suppliers of goods not for sale. This program helps us to avoid negative impacts.
- To encourage governance and a culture consistent with high ethical standards, this year we published a Supplier Code of Ethics, which we distributed for their signature, beginning with those who are evaluated in the Responsible Sourcing Program. At the close of 2021, 100% of Suburbia suppliers, 62% of Liverpool suppliers and 40% of goods-not-for-sale suppliers had signed this code.
Product development
GRI 306-1, 306-2, SASB CG-EC-410a.2; CG-MR-410a.3
- In store-branded merchandise, we made further progress on incorporating recycled, recyclable or environmentally friendly packaging and containers. For instance, our hangers now contain 50% recycled polystyrene. In our shoe boxes, currently 100% of the Suburbia and Liverpool store brands use Forest Stewardship Council (FSC)-certified cardboard, which guarantees it comes from sustainably managed forests.
- With regard to product composition, also in our proprietary brands, we focus on textile produces and require that all our cotton be sustainably sourced (certified by the Better Cotton Initiative), and use recycled fiber in their manufacture.
- We try to convey these management efforts to our suppliers’ culture, and during the year we began developing a sustainability training program, which will be launched in 2022.
Quality
GRI 416-1
- We comply strictly with all commercial labeling laws so that customers are able to make the best purchasing decision based on their needs.
- We also ask suppliers to provide quality certifications based on independent audits, so we can ensure they are also in compliance.
- Because we offer a selection of foods in our restaurants and gourmet shops, we have H Distinction certification in all our establishments. This includes the measures and trainings necessary to ensure food safety and handling.
Ethics and compliance
El Puerto de Liverpool encourages an organizational culture based on ethical management and compliance with internal and external policies and codes. Relations between our employees and other stakeholders are guided by company’s Code of Ethics and Code of Conduct and Integrity.
The following are further details on our working framework and progress during the year.
Business ethics and compliance
GRI 205-1, 415-1, 2-26, 205-1, 415-1
- Our employees receive training through a broad-based program covering issues such as guaranteeing free competition in procurement, among others. It is available online for our entire workforce.
- We make our Línea Ética ethics hotline available to all of our employees and the general public. We launched several campaigns last year to encourage people to learn about and use it, and also to remind them of the importance of following our policies and codes. The Compliance area is in charge of monitoring adherence to the codes, although the cooperation of all our teams and employees is also essential. All reports received are handled with absolute respect for all parties, a process involving the Ethics Committee.
- Liverpool does not receive financial aid or assistance from the government of any kind, nor does it make political contributions.
Security and use of information
SASB CG-EC-230a.1; CG-MR-230a.1; FN-CF-230a.3
Operations at El Puerto de Liverpool are sustained by technology, which makes it possible to offer our value proposal, ensure process efficiency and learn about changes in our customer’s purchasing habits in the digital environment.
- The Group has a solid structure for responding to the type of cybersecurity risk we are seeing today around the world. This includes a Cybersecurity Operation Center (SOC), responsible for actively monitoring and responding to possible threats.
- In our continuous monitoring we conduct access testing and evaluate platforms against benchmark standards. We have a certificate of compliance with International Security Standard PCI-DSS 3.2.1 for the use of credit and debit cards as payment methods.
- We also know that building employee awareness about security and use of information is a key aspect, so we conduct frequent campaigns throughout the year to ensure they exercise due care in all their activities.
- We are also very careful about how we use the data our customers supply us. We abide by the law and avoid any practice that might harm them. Our customers are able to exercise their rights to access, rectification, cancellation and opposition (ARCO) regarding the handling of their personal information.
Environmental performance
In order to operate with increasing respect for the environment, we have been working on our processes, incorporating the criteria of circular economy and eco-efficiency and reducing emissions of the greenhouse gases (GHG) that contribute to climate change.
Our roadmap incorporates initiatives designed to maximize our impact through collaboration between various areas and teams. The progress we made last year supported a statement of medium-term commitments, which reflect the priority that El Puerto de Liverpool places on the environment.
Our commitments for the year 2040 are:
- To be a Net Zero company in the GHG emissions we manage directly, reducing them by close to 268,000 metric tons of CO2 equivalent.
- Set emission reduction goals based on international methodologies, specifically goals aligned with the Science Based Targets initiative (SBTi).
- Recycle 100% of the eligible waste, equivalent to around 26,000 metric tons a year.
- Progress on our water balance, with the following specific targets: 1) reduce freshwater consumption by at least 1,070,000 m3; 2) treat approximately 885,000 m3 of the water we use; 3) continue increasing our rainwater capture.
Environmental culture
As part of our sustainability training program for employees, we have developed content on environmental management, which includes specialized topics like waste storage.
We also distribute our Environmental Policy on a regular basis, encouraging all employees to align with these principles.
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We work on processes to improve our environmental performance, incorporating the criteria of circular economy and eco-efficiency and reducing greenhouse gas (GHG) emissions.
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We combined third-party supply under supply agreements with self-generation through solar panels on our buildings.
Energy and emissions
SASB CG-EC-410a.2
We manage these from two positions:
- Reduction of energy consumption through efficiency initiatives. During the year we conducted an exhaustive analysis of technologies and systems in order to continue our progress, and completed phase 2, the most important in this process— the change of lighting fixtures to LED technology.
- Increased use of renewable energies. We combined third-party supply under supply agreements with self-generation through solar panels on our buildings. In 2021 we also began incorporating the first hybrid and electric trucks for distribution of merchandise to customers, and we set up charging stations. This is the first step in a much broader commitment.
Additionally, we calculated our Scope 1 and 2 GHG emissions, which are reported in the ESG Annex. With this, we track them throughout the year and monitor the efficacy of the energy measures indicated.
- Scope 1 - direct emissions resulting from our activities: consumption of fuel in our locations, emissions of refrigerant gases leaked from air conditioning equipment and consumption of fuel in the group’s own logistics fleet.
- Scope 2 - electrical energy consumed from non-renewable sources.
Water and waste
GRI 306-1, 306-2
Our strategy for water use efficiency is structured along the following axes: acquisition of technologically advanced equipment, rainwater capture in our buildings and reinforcement of monitoring and maintenance to immediately address any discrepancies in consumption.
Also, we have wastewater treatment plants at 24 locations, in which we reuse water for sanitary facilities and watering.
To manage the waste generated in our facilities, we acted to optimize its use and give it a second life. The key lies in correct separation through the availability of appropriate spaces and training of our employees, along with the hiring of companies that specialize in waste treatment. We address the specific aspects of each kind of waste: for example, we use biodigesters to treat the organic waste generated in our restaurants.
Circularity in processes and products
SASB CG-EC-410a.2; CG-MR-410a.3
We incorporated the circular economy approach to our processes, seeking to optimize resource utilization and taking advantage of waste, as outlined previously.
A fundamental part of this is our Comprehensive Sustainable Packaging System, which we describe in the chapter on Relations with Commercial Partners.
Arco Norte Logistical Platform: committed to sustainable operations
The Arco Norte Logistical Platform (PLAN, by its initials in Spanish) is the first El Puerto de Liverpool facility designed with a commitment to sustainability. Besides having LEED certification, it operates on a water-neutral, CO2-neutral and waste-neutral basis. To achieve this, PLAN incorporates the following measures in its operations:
- Water: We have rainwater capture systems covering all of our operating needs, primarily cleaning and watering. There is also a wastewater treatment plant with the capacity to handle 215,000 m3 per year, so that the water can be returned to Xhitey creek.
- GHG emissions: We have planted 20 hectares of green areas with resilient species endemic to the region, which will attract more than 85,000 kg of CO2 per year, offsetting what we generate in our operations by 1.2 times. We also substituted LP gas for electrical energy, which enabled us to avoid generating 1,190 metric tons a year of CO2.
- Waste: Our management system involves separating out waste that can be reused or recycled, to contribute to our goal of sending zero waste to landfills. We estimate that 3,100 metric tons of our cardboard are recycled each year, among other waste products. Also, the first PLAN biodigester plant will have the capacity to process 545 kg of waste per day.
Social commitment
As a group, we want to support education, which is the engine of opportunity for society. We adopt a holistic approach for our contributions, supporting better infrastructure and quality of life, which benefit both students and teachers.
Holistic education program
We develop various lines of action with our allies, with whom we share a purpose. We work to promote education in our communities, for students from 3 to 18 years of age and their families, and key educational agents. To this end, we pursue the following actions:
- Strengthening Liverpool Virtual University as a platform open to all of society. Its course offering is structured into programs for professional development and in 2021 we added parenting courses and personal wellness topics. During the year, 3,504 students participated in these academic programs.We also introduced the open digital high-school equivalency program through the same platform—focused especially on youth—developed by El Puerto de Liverpool together with our allies. The program will begin in 2022.
- Improving our educational infrastructure and the capacities of teachers and administrators. We have made progress identifying the schools to sponsor in 2022, considering the areas of influence around our locations.
- Developing an open course offering for teachers and administrators, where we have already structured programs for launch, aimed at school principals, vice principals, administrators and teachers.
- Strengthening technical training including technical high-school degrees that connect the company’s talent attraction needs with opportunities in our value chain.
The “Successful Careers” program identifies positions within the professional qualifications at el Puerto de Liverpool and then generates ties with related high school programs that have the models for implementing professional internships.
During the year we signed various agreements and made particular progress in our program for the food and beverages team, starting by the position of cook.
Other social initiatives
Our commercial activities allow to organize toy drives during the holiday season through online donations to a digital gift registry and containers in our headquarters. For the first time, we also placed collection bins in stores in our Puebla and Tlaxcala shopping centers. We are proud to have the unfailing support of our customers, which made this campaign a great success. This year, we presented 1,364 toys to disadvantaged children through specialized organizations.
In all of these actions, the involvement of our employees was crucial. Although we had to scale back volunteer activities and channel them through digital media in 2020, in 2021 we resumed face-to-face activity, with a focus on education and the environment. The following are two of the most important of these:
- We approached academic institutions facing a scarcity of resources and offered to restore sports facilities and leisure areas in their premises. We worked with schools in Mexico City and Mexico State with the participation of more than 90 volunteers, who donated a total of 368 hours of time.
- To benefit the environment, we took part in the reforestation of 300 endemic tree species in the municipality of Huixquilucan, thanks to the altruistic work of 45 volunteers from El Puerto de Liverpool.